If you were all ready to go to closing and were arranging for insurance to be in place, your insurance agent should have access to any previous claims of water damage.
I know this from personal experience and from a long standing relationship with our insurance guy who told us about a two years previous water damage claim on a northern house we were buying. Everything turned out to be fine, but we had our real estate agent get all the records of the claim from the seller before we would proceed.
Things like this can vary from state to state it seems. This was not our Florida house.
As the market tightens, perhaps buyers can include more specifics on deal killers in a contract to purchase.
Florida is different though. I am curious as to if this is a Villages agent or the MLS. ( I have read most of this thread but not the last few responses yet, so forgive me if that info has been posted.)
Boomer
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Pogo was right.
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