What Is The Average Cost Of Flood Insurance In Texas
What Is The Average Cost Of Flood Insurance In Texas
“I spent 15 minutes trying to untangle headphones today. Who knew life was full of so many unexpected challenges? Let’s talk about a big one—flood insurance in Texas.”
Floods are the most frequent natural disaster in the U.S. Yet only 4% of homeowners nationally have flood insurance, according to FEMA, even though 99% of U.S. counties have faced flooding since 1996. Regular homeowners insurance does not cover flood damage. For that you must have flood insurance. It’s going to give people protection in Texas every time there’s a flood.
Is Flood Insurance Required In Texas?
Texas has no requirement for you to even carry flood insurance. But if your home has a mortgage when you live in a flood-prone area, the lender may require you to purchase flood insurance. Flood zones – called Special Flood Hazard Areas (SFHA) – are areas at risk of flooding 26% of the time over 30 years.
In fact, 40 percent of all federal flood insurance claims come from homes in low-to-moderate-risk zones. That should tell you something — even if you aren’t required to carry flood insurance, you should buy it, considering how much property damage the state gets from floods.
Many Texas renters and homeowners policies in cities including Houston, Austin and San Antonio do not cover flood damage. Without supplemental flood insurance, you will have to pay for repairs yourself if your home or property incurs flood damage.
Also, keep in mind that Texas suffers some of the worst fatalities and property loss as a result of flooding. That’s because, in much of The Lone Star State, flash floods, tropical storms, heavy rains and hurricanes are all becoming more frequent. Flooding aside, if you live in an area that’s prone to being hit by hurricanes, invest in hurricane insurance, too. This will protect you against damage caused by high winds and storm surges.
How Much Does Flood Insurance Cost In Texas?
How Much Does Flood Insurance in Texas Cost? So, on average, they cost $784 for the year.
Average Cost Of Flood Insurance In Texas By City
Due to its location near the Gulf Coast and substantial risk of flooding, Houston has an average annual cost of flood insurance of about $821. In contrast, Austin is inland and less vulnerable to major flooding, which is why its flood insurance costs are typically lower. On average, they plan to shell out about $601 annually.
Average Cost Of Flood Insurance In Texas By Zone
In Texas, FEMA established flood zones to assist insurers in puncturing risk, with high-risk zones indicated with the letters A and V. Residents in these high-risk landscapes can prepare to pay as much as 52 percent more than those in moderate or low-risk locales, according to Bankrate.
- High-risk zones (e.g., AE, AH, VE): Homeowners in these zones typically pay $900–$1,200 in annual premiums.
- Moderate to low-risk zones (eg. B, C, X): Homeowners in these zones have to pay lower premiums. Texans living in moderate to low-risk areas, on average, can pay $671 annually.
- If you’re unsure about the risk of flooding where you live, FEMA’s Flood Map Service Center offers a user-friendly way to access flood zone data for any address.
Average Cost Of Flood Insurance In Texas By County
High-risk counties are more likely to suffer flood damage and residents must pay more for coverage. Homeowners in Calhoun County, one of the coastal counties, and Galveston County will pay an average of $1,029 and $992 a year for an NFIP flood insurance policy. By contrast, Texans living in inland counties, such as Bexar County, can pay as little as $794 a year.
What Factors Affect The Average Flood Insurance Cost In Texas?
Read more: How much does flood insurance cost in Texas? Fortunately, it’s easy to figure out “How much is flood insurance?” whether in Houston or Galveston, at a Risk Rating of 2.0.
Risk Rating 2.0 is a system — implemented by the Federal Emergency Management Agency (FEMA) — that can help you determine your property’s flood insurance price. This new system helps with accuracy and helps reduce the National Flood Insurance Programs (NFIP) debt. Risk Rating 2.0 is also not reliant on flood maps like its predecessor. Instead, it calculates the cost of Texas flood insurance by looking at a property’s actual risk factors, including foundation type, the height of the house above sea level and distance to water.
This new pricing methodology delivers more equitable and accurate premiums. But your location will still be a major factor in the final rate. These are some things that can impact your cost of flood insurance in Texas:
Flood Risk
Different parts of Texas are prone to flooding, all of which can affect your rates. Because Risk Rating 2.0 assesses each property individually, you and your neighbor may have different flood risks.
Type Of Policy
The type of policy you select impacts your rate. Types of insurance policies you can buy Contents-only insurance policy, building-only policy or a combined of both.
Coverage Types And Amounts
The amount of coverage you purchase also affects your expenses. For example, a private policy that provides $1 million in building coverage will be more expensive than an NFIP policy with $250,000 in coverage.
Deductible
Increasing your deductible can help reduce your premium. Detuctables generally vary from $1,000 to $10,000. But keep in mind that higher deductibles means you’ll owe more in the event that you make a claim.
Age, Design & Structure Of Your Home
Flood insurance companies also take into account the age of your home to assess rates. Homeowners whose homes are relatively older are charged higher premiums by insurers. Also, the design and materials of your home can have an impact on the cost of flood insurance in Texas.
Insurance Company
If you’re going to apply for private flood insurance, it’s recommended to get flood insurance quotes from several different companies in Texas and choose the one that offers the best price.
What Does Texas Flood Insurance Cover?
Flood insurance — for Texans, it is a critical issue because standard homeowners insurance does not cover flood damage. Flood insurance covers both your dwelling (your home) and contents (belongings). Dwelling coverage pays to repair your home, while contents coverage pays to replace your damaged personal items. You can choose a policy covering the building, the contents or both.
Many flood insurance policies include a 30-day waiting period, meaning coverage doesn’t start until 30 days after you purchase the policy. This avoids last-minute purchases as a hurricane or major storm approaches.
Because flood insurance from the NFIP doesn’t include additional living expenses or loss of use coverage, it’s not like a home policy. If your home is damaged and you have to reside elsewhere temporarily, flood insurance won’t cover additional expenses like hotel bills, restaurant meals or pet boarding — costs that a standard home insurance policy would cover.
Dwelling Coverage
Known as building coverage, dwelling coverage pays to repair or replace your home if a flood damages it.
If, for instance, a flood destroys your water heater or electrical system, this coverage policy would pay for the costs of repair or replacement.
NFIP flood insurance offers only $250,000 in dwelling coverage. You can purchase higher limits from private flood insurers, if needed.
Contents Coverage
Contents coverage — also known as personal property coverage — pays to repair or replace your belongings if they’re damaged in a flood. Things such as clothing, furniture and appliances. The NFIP covers contents up to $100,000, but private flood insurers might provide higher coverage limits.
Unlike the deductible for homeowners insurance, which applies to your whole home insurance policy, coverage for contents is optional and must be purchased separately.
What Does Flood Insurance Exclude?
While flood insurance is extremely valuable to Texas homeowners, as it additionally protects against most home insurance claims, it tends not to cover cases or items of interest.
Some common exclusions under NFIP flood insurance include:
- Damage caused by earth movements like sinkholes or landslides, even when set off by a flood. For damages like those, you’ll normally need earthquake insurance.
- Damage to basements or any items that were kept there.
- Damage from sewer backups. Sewer backups are covered under some home insurance policies, but only if you have purchased an additional option known as a water backup endorsement.
- Damage to vehicles. If you have comprehensive auto insurance, it usually covers vehicle damage caused by flooding.
- Damages to most detached structures including patios, fences, plants, decks and walkways.
- Temporary housing or moving costs.
- Lost income.
Conclusion
The NFIP’s flood insurance has limits of $250,000 on the structure of your house and $100,000 on its contents. A policy with higher limits is typically available through a private flood insurance company. You are a Texas renter, so your landlord will cover building damage. The NFIP will sell you up to $100,000 of personal property coverage.
FAQ
Changes to FEMA’s Risk Rating 2.0, updated flood zone maps or personal factors such as your home’s age and where you live can all affect flood insurance rates. Price hikes also may be driven by an increase in claims in your locality.
Ways to save on flood insurance premiums include raising your home, adding flood-proofing features, opting for a higher deductible and, if you can, relocating to a lower-risk zone. Bundling with other types of insurance or asking private insurers for discounts may also work.
Texas has its own flood-disclosure requirements, including seller obligations to buyers of a property’s flooding history. But flood insurance is not mandated by the state; it is a lender’s requirement when homes are in high-risk zones.
