The NAAA Standards Committee has made an adjustment to the NAAA Arbitration Policy.

Currently, a Flood Damage disclosure (from sellers to buyers) was only required for vehicles selling under the following sale light combinations:

• Green light only
• Green/Yellow light
• Yellow light only

For vehicles sold under the Red light a disclosure was NOT required.
Effective September 5, 2017 until further notice, Sellers will now be responsible for any/all flood damage disclosures to buyers when selling regardless of sale light which includes the red light.

The time period for Flood Damage via auction inspection is now extended from the "B & C" to "30 days from sale date". The time period for Flood Damage via DMV and/or Insurance company records will remain the same "120 days".

The NAAA Standards Committee strongly urges all selling and buying clients to inspect the vehicles prior to the transaction to avoid arbitration issues. See's reference page for flood damage inspection best practices.

Questions, please email Matt Arias at or Kurt Madvig at

Flood Policy Inspection Checklist

Flood Damage Poster

Arbitration Policy Guidelines - 9/5/17