If you live in Texas, you've probably heard the stories. Hurricane Harvey dumping over 60 inches of rain on parts of Houston in 2017. The July 2025 Central Texas floods that killed more than 100 people and caused up to $22 billion in damages when four months of rain fell in just a few hours. Flash floods turning Austin streets into rivers. Here's the uncomfortable truth: Texas is getting wetter, and most homeowners don't have the protection they need.
Your regular homeowners insurance won't cover flood damage. Not a drop. Whether you're in Houston, Dallas, San Antonio, or the Hill Country, if water rises and damages your home, you're on your own unless you have a separate flood insurance policy. Let's break down everything you need to know about protecting your home and your financial future from Texas floods.
Understanding Flood Insurance Requirements in Texas
Whether you're required to have flood insurance depends on two things: where you live and whether you have a mortgage. If your home is located in a Special Flood Hazard Area (SFHA)—that's any flood zone starting with the letters A or V—and you have a mortgage from a federally regulated or insured lender, you must carry flood insurance. This isn't optional. It's federal law.
These high-risk zones represent areas with a 1% or greater chance of flooding each year—what people often call the "100-year floodplain." Don't let that name fool you, though. A 1% annual chance means there's a 26% chance of flooding during a typical 30-year mortgage. Those aren't comforting odds.
But here's what surprises most people: you can flood even if you're not in a high-risk zone. After Hurricane Harvey, only 1-2% of homes affected by the Fourth of July floods had flood insurance. Many of those homeowners thought they were safe because they weren't in a flood zone. Texas's flat terrain, clay soils that don't absorb water well, and increasingly intense storms mean flooding can happen almost anywhere.
NFIP vs. Private Flood Insurance: What's the Difference?
You have two main options for flood insurance in Texas: the National Flood Insurance Program (NFIP), which is run by FEMA, or a private insurance company. For decades, NFIP was basically your only choice. But the private flood insurance market has exploded in recent years, and for good reason.
NFIP policies come with strict limits: $250,000 maximum for your building and $100,000 for your belongings. If you own a home in Houston or Austin worth $400,000, you're already underinsured before we even talk about your furniture, electronics, and personal items. Private insurers, on the other hand, often offer coverage limits of $1 million or more.
Private flood insurance also typically has shorter waiting periods—15 days compared to NFIP's 30 days—and may offer additional coverage options like replacement cost for your belongings (NFIP only pays actual cash value) or additional living expenses if you're displaced from your home. Companies like Neptune Flood, Lloyd's of London, TypTap Insurance, and Aon Edge are actively writing policies in Texas.
The average flood insurance premium in Texas is $879 per year as of 2025, which is actually below the national average. But your specific rate depends on your property's individual flood risk, especially since FEMA implemented Risk Rating 2.0 in 2021. This new rating system looks at factors like your distance from water, the type of flooding that's likely, how often flooding occurs in your area, your home's foundation type, and replacement cost. Since Risk Rating 2.0 launched, average NFIP premiums in Texas have increased by 35%, while the number of buildings covered dropped by 30%. That's a lot of uninsured Texans.
Houston and Texas's Flooding Reality
Houston leads Texas in flood insurance policies with 150,213 active NFIP policies and an average premium of $580. That's not an accident. Hurricane Harvey alone flooded over 300,000 structures, damaged around 500,000 vehicles, displaced 30,000 people into shelters, and caused over $125 billion in damages. It was one of the costliest natural disasters in U.S. history.
But Harvey wasn't an anomaly. Houston has dealt with Tropical Storm Allison in 2001, the Memorial Day flood in 2015, and the Tax Day flood in 2016. The city's flat topography, proximity to the Gulf of Mexico, and rapid urban development have reduced natural drainage areas, making flooding more likely and more severe.
The July 2025 Central Texas floods showed that flooding isn't just a coastal problem. The Texas Hill Country—counties that had been experiencing drought since late 2021—received the equivalent of four months of rain in just a few hours. The flooding killed more than 100 people and was classified as a "1/1000 year" event, meaning it had only a 0.1% probability of happening in any given year. It was the deadliest inland flooding event in the United States since 1976.
Climate scientists call this "weather whiplash"—the rapid swing from drought to deluge. Texas is experiencing more of it, and it's making flood risk harder to predict based on historical data alone.
What Flood Insurance Actually Covers
Flood insurance covers damage from rising water—water that touches the ground before it enters your home. That includes overflow from rivers, streams, and bayous; heavy rainfall that overwhelms drainage systems; storm surge from hurricanes; and even water that backs up through sewers or drains due to flooding.
Your building coverage pays for the structure of your home, including the foundation, walls, floors, electrical and plumbing systems, built-in appliances, and permanently installed carpeting. Contents coverage is separate and covers your furniture, clothing, electronics, appliances, and other personal belongings.
What flood insurance doesn't cover: temporary housing while your home is being repaired (unless you have a private policy that includes additional living expenses), basement improvements like finished walls or floors, currency and precious metals, and outdoor property like decks, patios, and landscaping.
How to Get Flood Insurance in Texas
Start by checking your flood zone. FEMA's Flood Map Service Center will show you whether you're in a high-risk area, but remember that anywhere in Texas can flood. Next, get quotes from both NFIP (through your current home insurance agent—most write NFIP policies) and private insurers. Compare not just the price, but the coverage limits, waiting periods, deductibles, and what's actually covered.
Don't wait until a storm is in the Gulf. Most flood policies have a 30-day waiting period before coverage kicks in. If you're closing on a new home, coordinate with your lender to ensure your flood insurance is in place before closing day if you're in a high-risk zone.
If cost is a barrier, ask about lower coverage limits or higher deductibles to bring your premium down. Some protection is better than none. You can also look into grants or assistance programs if you're in a qualified area or meet certain income requirements.
Texas is beautiful, affordable, and growing fast. But it's also increasingly wet. Protecting your home from flood damage isn't just about complying with your mortgage requirements—it's about protecting the biggest investment most of us will ever make. Compare your options, understand what you're buying, and don't wait until the next storm is on the radar. Your future self will thank you.
