Texas Flood Insurance

Flooding is a serious problem in Texas. Many parts of this state are vulnerable to heavy rains and storm surges when hurricanes and tropical storms make their way through the Gulf. If you own property in Texas, you may want to give serious consideration to covering it with flood insurance.

Local independent agents are aware of your potential flood risks because they live and work in your community. These agents are available to help you review flood maps and, if needed, cover your property with an affordable flood insurance policy. Contact an insurance agent near you to get started.

What Is Flood Insurance and Why Is It Important?

Flood damage is not covered by home insurance, renters insurance, or business insurance. Fortunately, the National Flood Insurance Program (NFIP) was created in 1968 to ensure that all property owners have access to guaranteed and affordable flood insurance.

According to FloodFactor, around 19% of all properties in Texas are vulnerable to flooding. That is more than 2 million homes and businesses in the Lone Star State. However, only about 608,000 of these at-risk properties are covered by flood insurance.

Many people think that if their property is located outside of a designated flood zone, they do not need to worry about this hazard, but this is not always the case. In fact, 20% of all flood claims filed are for properties that are situated in low- or medium-risk areas.

This can be quite problematic for the uninsured because, according to FEMA, as little as one inch of rainwater in your home can cause as much as $25,000 in property damage. By purchasing a flood insurance policy, you do not need to worry that an overflow event will cause you large financial losses.

Is Flood Insurance Required in Texas?

Flood insurance is not required by law. However, if you are still paying on a mortgage and your property is located in a FEMA-designated flood zone, your lender will most likely require you to carry flood insurance until your loan is paid in full.

For properties that are owned outright or that have a low risk of sustaining flood damage, this insurance is optional.

How Much Does Flood Insurance Cost in Texas?

The average cost of flood insurance in Texas is $618 a year, or $51.50 a month. Of course, rates can vary because they are based on multiple factors such as the following.

• Details about your property including its age, value, structure, style, and elevation
• Your property’s flood risk according to a FEMA flood map
• How much structural coverage you are purchasing
• How much contents coverage you are purchasing

A flood insurance policy for a property located in a low-risk flood zone will cost considerably less to insure than one in a high-risk zone.

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What Does Texas Flood Insurance Cover?

Flood insurance is made up of two parts: structural (dwelling) coverage, and property (contents) coverage. The NFIP has different coverage limits for individuals and businesses.

• Dwelling coverage: This pays to repair damage to the structure of your property. It includes coverage for things like the building's foundation, plumbing and electrical systems, water heaters, and HVAC systems.
  • Homeowners may purchase up to $250,000 in dwelling coverage.
  • Businesses may purchase up to $500,000 in dwelling coverage.
• Contents coverage: For homeowners, this can cover personal belongings like furniture, electronics and clothing kept on main levels of your home. For businesses, it can cover merchandise, inventory, computers, and other business-owned property.
  • Homeowners may purchase up to $100,000 in contents coverage.
  • Businesses may purchase up to $500,000 in contents coverage.

You can choose to purchase just one or both types of coverage, depending on your situation. For instance, if you rent your home or business space, you will only need to purchase the contents portion of this coverage since your landlord will be responsible for covering damage to the building's structure.

What Is Not Covered by Texas Flood Insurance?

As with any type of insurance policy, flood insurance has some limitations. For instance, you should not expect your policy to cover the following risks.

• Personal property that is kept in a finished basement
• Damage caused by earth movement
• Mold, mildew, or moisture remediation
• Landscaping features
• Property kept outside your home like decks, hot tubs, and swimming pools
• Currency, precious metals, and important papers
• Temporary living expenses for homeowners who must leave their homes while repairs are made
• Financial losses incurred by businesses due to needing to close while repairs are made
• Damage to your vehicle

It is important to be aware of what your policy will and will not cover so you are not faced with any unexpected surprises when you file a claim.

Why Work with an Independent Agent in Texas?

If you are thinking about buying flood insurance, you can turn to an independent insurance agent for guidance and advice. These agents can answer your insurance-related questions, help you review your property’s flood risk, and, at your request, assist you with finding an affordable policy.

There are nearly 1,800 independent agents with offices in Texas, so it should be easy to arrange an obligation-free consultation with an experienced insurance agent near you.