Flood Insurance in Texas: What’s Covered, What’s Not, and How to Handle Claims
If you live in Texas, you already know that flooding isn’t just something that happens along the coast or in well-known flood zones. One bad storm, a few days of relentless rain, or a river overflowing its banks, and suddenly, neighborhoods that have never flooded before are underwater.
Now, here’s the question: Would your insurance cover you if that happened to your home?
Most Texas homeowners assume their standard insurance policy protects them from flood damage. Unfortunately, that’s not true—and many don’t find out until it’s too late.
If you’re wondering whether you need flood insurance, how much it costs, and how to protect yourself from lowball settlements and denied claims, this guide will break it all down in plain English.
Why Flood Insurance Matters in Texas
Texas is one of the most flood-prone states in the U.S. We’ve seen major disasters hit places that never expected to flood—like Houston during Hurricane Harvey, Central Texas during the 2015 Memorial Day floods, and even Dallas-Fort Worth, where heavy rains have caused massive flash flooding.
But here’s what most people don’t realize:
- Over 40% of all flood insurance claims come from areas outside of high-risk flood zones.
- Just one inch of floodwater can cause up to $25,000 in damage to your home.
- Without flood insurance, your only hope for financial relief is federal disaster aid—which is extremely limited and not guaranteed.
Does Homeowners Insurance Cover Flood Damage?
The short answer? No.
Your homeowners insurance may cover water damage from a burst pipe, an overflowing toilet, or even a leaky roof—but the moment that water is coming from outside your home (like from heavy rain, a swollen creek, or rising floodwaters), it’s considered flood damage and is not covered by a standard policy.
Here’s how insurance companies define a flood:
“Flooding occurs when water covers at least two acres of normally dry land or affects at least two properties, one of which is yours.”
If a storm leaves your neighborhood underwater, and your home is damaged? Without a separate flood insurance policy, you’re paying for everything out of pocket.
When Is a Water Damage Claim NOT Considered a Flood?
Understanding the difference between flood damage and water damage is crucial because it determines whether your homeowners insurance or flood insurance will cover the loss.
When Water Damage Is NOT Considered a Flood
A water damage claim is not a flood when the water source is inside or directly impacting only your home. Examples include:
- Burst pipes – If a pipe in your home bursts and causes water damage, your homeowners insurance should cover it.
- Plumbing overflows – If a toilet, sink, or bathtub overflows and damages your floors or walls, it is covered by homeowners insurance.
- Roof leaks – If a storm causes damage to your roof and rainwater leaks inside, that is a covered peril under most homeowners insurance policies.
- Water heater or appliance failures – If your dishwasher, washing machine, or water heater malfunctions and causes damage, homeowners insurance typically covers it.
- Accidental water discharge – If an air conditioning unit or an HVAC system leaks inside your home, the resulting damage is covered by homeowners insurance.
In these cases, the key difference is that the source of the water is inside your home or results from an event that directly impacts only your property, rather than a widespread natural event.
When Water Damage IS Considered a Flood
A water damage claim is classified as a flood if the water originates outside your home and impacts two or more properties or two acres of normally dry land. Examples include:
- Heavy rain overwhelming storm drains and causing water to enter your home
- Rising water from overflowing rivers, lakes, or creeks
- Storm surge from a hurricane or tropical storm
- Flash flooding that impacts your neighborhood
- Mudslides caused by excessive rainfall
If the source of the water is external and affects multiple properties, then the damage will be classified as a flood, meaning flood insurance is required for coverage.
Have questions about a water damage insurance claim? Call us today: (682) 267-0336
Do You Have to Prove Your Water Damage Claim Was NOT a Flood?
Yes, in many cases, you will need to provide evidence to show that your claim qualifies as water damage covered by homeowners insurance rather than a flood claim.
How to Prove Your Claim Is NOT a Flood
- Document the Source of the Water
- Take photos and videos of the exact point of entry where the water damage occurred.
- If the damage was caused by a burst pipe, appliance failure, or roof leak, document the location of the issue.
- Provide Maintenance Records
- Insurance companies may argue that poor maintenance caused the damage rather than a covered event.
- Keep records of past plumbing inspections, roof repairs, and HVAC maintenance to show that the damage was unexpected.
- Compare to Local Weather Conditions
- If heavy rainfall or a storm occurred on the same day as your water damage, your insurance company may try to classify it as a flood claim.
- Provide evidence that water did not enter your home from rising water levels or natural flooding.
- Hire a Public Adjuster
- If your insurer denies or disputes your claim, a public adjuster can inspect your property and provide an independent report.
- This report can support your claim that the water damage is not from a flood and should be covered by homeowners insurance.
What Happens If Your Insurance Company Wrongly Classifies Your Claim as a Flood?
If your insurance company denies your water damage claim by stating that it was caused by flooding when it was not, you can:
- Request a second inspection – Insurance adjusters can make mistakes. You have the right to request another evaluation.
- Hire a public adjuster – A public adjuster can assess the damage independently and negotiate with your insurer.
- File a dispute – If you believe your claim was wrongly categorized as a flood, you can challenge the decision through the insurance company’s dispute resolution process.
If your insurance company is wrongly classifying your water damage claim as a flood, we can help you fight back. 📞 Call us at (682) 267-0336
How to Get Flood Insurance in Texas
If you’ve realized you need flood insurance, the next step is figuring out where to get it. You have two options:
The National Flood Insurance Program (NFIP)
The NFIP is a federal program managed by FEMA. If your community participates in the program, you can buy a government-backed flood insurance policy through your local insurance agent.
What you need to know about NFIP insurance:
- Covers up to $250,000 for your home and $100,000 for personal belongings
- Has fixed rates, meaning pricing doesn’t change based on the insurance company
- Has a 30-day waiting period, so you can’t buy it at the last minute before a storm
- Doesn’t cover temporary housing or lost business income
Private Flood Insurance
Some insurance companies offer private flood insurance, which may provide:
- Higher coverage limits than NFIP policies
- Shorter waiting periods before coverage starts
- Coverage for temporary housing costs if your home is unlivable
- Business owners can get coverage for lost revenue due to flooding
Private flood insurance is often cheaper than NFIP insurance, but not all companies offer it, and pricing can fluctuate.
Comparison table between Private Flood Insurance and The National Flood Insurance Program (NFIP):
| Feature | Private Flood Insurance | NFIP |
|---|---|---|
| Provider | Private insurance companies | Federal government (FEMA) |
| Coverage Options | More flexible, customizable coverage limits | Standardized coverage limits |
| Maximum Coverage Limits | Can exceed NFIP limits, often offering higher limits | $250,000 for residential buildings; $100,000 for contents |
| Waiting Period | Often shorter (some policies have no waiting period) | 30-day waiting period |
| Availability | Not available in all areas; varies by insurer | Available nationwide |
| Premium Costs | Can be lower or higher depending on risk assessment | Standardized rates based on FEMA flood maps |
| Underwriting Process | Uses private risk models, sometimes offering better rates | Uses FEMA flood zones and maps for rating |
| Coverage for Additional Living Expenses (ALE) | Often included, covering temporary housing and expenses | Not covered |
| Basement Coverage | More comprehensive; may cover finished basements | Limited coverage for specific items only |
| Business Coverage | Higher limits and more options for businesses | Limited commercial coverage |
| Claims Processing | Typically faster claims processing | Claims may take longer due to federal procedures |
| Lender Acceptance | Some lenders may prefer NFIP, but private policies are increasingly accepted | Widely accepted by mortgage lenders |
| Renewability | Policy terms vary; some insurers may choose not to renew | Guaranteed renewal as long as premiums are paid |
Private Flood Insurance Companies
Here’s a list of some private flood insurance companies that offer coverage in Texas:
- Ace – Offers flexible flood insurance options.
- Hiscox – FloodPlus – Provides higher coverage limits and additional living expenses not typically available through NFIP.
- NFS Edge – A private flood insurance provider offering competitive rates.
- Lloyd’s of London – Offers customizable flood insurance policies with higher limits.
- Wright Flood – Provides exclusive, admitted private flood insurance products in Texas with higher coverage limits and flexible options.
- Neptune Flood – Offers up to $2 million in dwelling coverage and up to $500,000 in contents coverage, often at competitive rates.
- TypTap Flood – Known for lower premiums and easier underwriting compared to NFIP policies.
- Aon Edge – A widely accepted private flood insurance solution trusted by over 3,000 lenders.
- Johnson & Johnson Insurance – Offers excess flood coverage designed to complement NFIP policies, extending coverage limits beyond federal caps.
- American Modern Insurance Group – Provides specialty flood insurance products for various dwellings, including seasonal homes and mobile homes.
Availability and coverage options may vary, so it’s best to contact these providers directly or consult with an insurance agent to determine the best coverage for your needs.
Do You Really Need Flood Insurance?
Maybe your mortgage lender isn’t requiring you to have flood insurance, so you assume you don’t need it. But here’s the reality:
Every home is in a flood zone—it’s just a matter of how high the risk is.
Many homes in “low-risk” areas have flooded in recent years, and because the owners didn’t have flood insurance, they were left paying tens of thousands of dollars in repairs out of pocket.
To see your home’s flood risk, check FEMA’s Flood Maps, but keep in mind:
- Flood zones change over time, and you may be at risk even if you weren’t before.
- Texas’ flood history shows that even low-risk areas aren’t always safe.
- The cost of flood insurance in a low-risk area is much lower than in a high-risk area.
What Does Flood Insurance Cover?
A flood insurance policy is designed to cover both your home and your belongings.
Building Coverage (Up to $250,000 under NFIP)
✔ Foundation and structural repairs
✔ Electrical and plumbing systems
✔ HVAC, water heaters, and fuel tanks
✔ Built-in appliances (dishwashers, stoves)
✔ Detached garages
Personal Property Coverage (Up to $100,000 under NFIP)
✔ Furniture, electronics, and clothing
✔ Kitchen appliances (refrigerators, washers, dryers)
✔ Carpets, curtains, and blinds
What’s NOT Covered?
❌ Landscaping, fences, pools, or decks
❌ Vehicles and personal belongings stored outside
❌ Temporary housing costs (unless covered by private insurance)
❌ Damage from moisture or mold that could have been prevented
How Much Does Flood Insurance Cost in Texas?
Flood insurance rates depend on:
- Your home’s location & flood zone
- Elevation of your property
- Coverage amount & deductible
✅ In low-risk areas, flood insurance can cost as little as $400–$700 per year.
✅ In high-risk areas, premiums may range from $1,200 to $3,000 per year.
Even if you’re in a low-risk area, it’s worth considering the financial impact of a flood compared to the cost of coverage.
How to File a Flood Insurance Claim
If your home is damaged by a flood, here’s what to do:
- Document everything immediately – Take clear photos and videos of all damage.
- Contact your insurance company – File a claim as soon as possible.
- Don’t start major repairs yet – Your insurance adjuster needs to inspect the damage first.
- Get a second opinion – Insurance adjusters work for the company, not you. A public adjuster can fight for the full amount you’re owed.
Don’t take a low payout without a fight! Call us today: (682) 267-0336
Flood Insurance FAQ
Does flood insurance cover my car?
No. Flood insurance only covers your home and personal property. If your car is damaged in a flood, you’ll need comprehensive auto insurance to cover it.
Can I get flood insurance if my home has flooded before?
Yes, but the cost may be higher, and some private insurers may not offer coverage. NFIP policies are available regardless of past flooding.
Does flood insurance cover temporary housing?
NFIP policies do not, but some private flood insurance policies include Additional Living Expenses (ALE) coverage for hotel stays and rental costs.
Can I get flood insurance if I’m not in a flood zone?
Yes, and in low-risk zones, it’s often cheaper than you think.
What if my flood insurance claim is denied?
You can:
- Request a second inspection
- Hire a public adjuster to negotiate on your behalf
- File an appeal with FEMA if you have an NFIP policy
What If My Flood Insurance Claim Is Denied or Underpaid?
Flood insurance claims can be complicated, and insurance companies don’t always get it right. If your claim is denied or underpaid, you can:
✔ Request a second inspection if your damage wasn’t fully assessed
✔ Hire a public adjuster to negotiate on your behalf
✔ File an appeal with FEMA if you have an NFIP policy
We can help. 📞 Call us today: (682) 267-0336