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Mandy Sleight has over 15 years of insurance knowledge and expertise in auto, home, life, health, pet, supplemental benefits, and other insurance products. She’s a sought-after insurance expert, appearing in Bankrate.com, Moneygeek.com, U.S. News & World Report, Reviews.com, CNET, and other publications, and she's been writing for Compare.com since 2023.
Mandy uses her background and experience working for well-known insurance companies like State Farm and Nationwide Insurance to create engaging and easy-to-understand content that helps readers make smarter insurance choices that have a positive effect on their budgets and finances.
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Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
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If you’re thinking about buying flood insurance or switching insurance companies, you’re not the only Texas homeowner weighing your options.
As the Federal Emergency Management Agency (FEMA) updates flood maps, many communities face new or expanded mandatory coverage zones.[1] At the same time, private insurers are retreating from high-risk areas, leaving many Texas residents with fewer options. And under FEMA’s Risk Rating 2.0, some homeowners are seeing rising premiums, making it more important than ever to understand all your options.[2]
Homeowners insurance doesn’t cover flood damage, which is why flood insurance is essential. The guide below will help you navigate Texas’ flood risk, insurance requirements, and costs to help you avoid major out-of-pocket costs if the unexpected happens.
Flood insurance in Texas costs an average of $1,118 per year.
Only homes with federally backed mortgages in high-risk FEMA flood zones require flood insurance. It’s optional for everyone else.
More than one-third of NFIP flood claims are in low- to moderate-risk floodplains.
Yes, Texas homeowners should strongly consider flood insurance. The federal government requires flood insurance if you have a federally backed mortgage in a Special Flood Hazard Area (SFHA).[3] But the risk goes far beyond those zones. In fact, more than 30% of flood insurance claims come from outside SFHAs, according to FEMA.[4]
Texas ranks No. 2 in the nation for NFIP claims, with $11.6 billion paid in the past decade and an average payout of $94,000. Of the 2.1 million homes at risk, more than half face at least a 1% annual chance of flooding, yet only 7% have flood insurance.[5]
Flooding isn’t limited to coastlines or mapped high-risk areas and can result from poor drainage, snow melt, nearby construction, or a broken water main. Costs can add up quickly, and homeowners insurance won’t cover flood damage. Just one inch of rain can cause around $25,000 in damage to your home and belongings.[6]
FEMA disaster assistance provides around $5,000 per household and isn’t guaranteed.[7] Flood insurance is often the only real financial protection homeowners have.
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Texas doesn’t have a statewide law requiring flood insurance for homeowners. But specific requirements may apply depending on your property’s location, flood zone, and mortgage lender.
Flood insurance is mandatory if you finance your home with a federally backed mortgage and it’s in an SFHA.
FEMA defines areas with a 100-year flood risk, or 1% or higher chance of flooding in any given year, as SFHAs. Homes in flood zone A and flood zone V are in high-risk zones. So, flood insurance is mandatory if you have a federally backed mortgage, such as through the Federal Housing Administration, Department of Veterans Affairs, Department of Agriculture, Fannie Mae, or Freddie Mac.
Flood insurance requirements for primary mortgages must be at least equal to the lowest of the following:
100% of the home’s replacement cost value
The maximum coverage available through the NFIP
The unpaid principal balance of the loan (or the original loan amount at closing)
Flood zones determine a property’s risk level and whether flood insurance is required. In Texas, these zones are especially important, as they affect your flood insurance costs and eligibility.
FEMA assigns flood zones based on the likelihood of flooding in any given year. High-risk zones have a 1% or higher annual flood chance, while low- and moderate-risk zones have a less than 1% annual flood chance.
Here are the FEMA flood zone categories for each risk level.
Flood Zone Designation  | Flood Risk | Requirements |
|---|---|---|
| A, AE | High | All federally backed mortgages |
| V, VE | High | All federally backed mortgages |
| B & X | Moderate | Some private lenders |
| C & X | Minimal | None |
| D | Undetermined | None |
Recent FEMA map updates are reshaping flood zones across Texas. A major revision is coming to Harris County in 2026, expected to significantly expand the 100-year floodplain.[8] In Kerr County, FEMA recently removed buildings from a flood zone following appeals — just before severe flooding struck the region in July 2025.
Visit FEMA’s Flood Map Service Center to check your property’s current flood zone.
You have two options for flood insurance in Texas: the NFIP federal flood insurance program or private flood insurance. The NFIP offers standardized policies with federally backed protection.
Private insurers provide alternative options for those who don’t qualify or need more coverage than the NFIP coverage limits provide.
The table below highlights key differences between NFIP and private flood insurance in Texas.
Factor | NFIP | Private Flood Insurance |
|---|---|---|
| Coverage limits | Up to $250,000 in dwelling coverage $100,000 in contents coverage | $500,000 or more for dwelling coverage $250,000 or more for contents coverage, depending on insurer |
| Average costs | $1,118 per year | Varies by company, flood zone, and coverage |
| Waiting periods | 30 days from purchase date | Up to 15 days |
| Additional benefits | Up to $30,000 for increased cost of compliance (ICC) coverage to rebuild after the flood Statutory discounts: newly mapped discount and pre-FIRM discount | May include replacement cost coverage for contents and detached structures, enhanced ICC coverage, loss assessment coverage, contents coverage for finished basements, and additional living expenses (ALE) |
The NFIP has a 30-day waiting period and strict content and building coverage limits, which may not fully protect higher-value homes. Private flood insurance can offer higher coverage limits, shorter waiting periods, and extra protections, like additional living expenses and coverage for finished basements.
Texas currently has 24 insurers in the WYO Program, including Allstate, American Family, Bankers Insurance, Farmers, Homesite, and USAA.[9]
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NFIP flood insurance rates average $1,118 per year in Texas. Private flood insurance premiums vary by company, but they may cost less than NFIP rates if you live in a low-risk area.
Here are the key factors insurers use to determine your flood insurance cost in Texas:
Flood-zone designation: Homes in higher-risk zones, like A and V, generally pay more than those in low-risk zones.
Home elevation, age, and construction type: Elevated, newer, and homes built to modern standards often have lower premiums.
Coverage limits and deductibles: Higher coverage limits increase premiums, but you can offset them with a higher deductible (up to $10,000).
FEMA Risk Rating 2.0: Under the FEMA rating system, about 80% of Texas policyholders saw an average premium increase of up to $120 per year ($10 per month). Around 14% saw a decrease, while 4% experienced a rate increase of $10 to $20 per month.[10]
Flood insurance helps pay for direct physical damage caused by rising water, but it doesn’t cover everything in your home. In Texas, where flash floods and storm surges are common, it’s important to understand what it does and doesn’t cover.
What flood insurance covers:
Structural damage to detached structures, permanently installed staircases and cabinets, foundation walls, and support systems
Electrical and plumbing systems, including pipes and wiring
Built-in appliances and heating, ventilation, and air conditioning (HVAC) units, like water heaters, heat pumps, and central air
Personal property, like clothing, microwaves, washers and dryers, curtains, and valuable items up to $2,500 if you buy contents coverage
What flood insurance doesn’t cover:
Sewer or drain backup, unless from a flood event
Temporary living expenses (covered only if you add it to a private flood policy)
Outdoor property like fences, swimming pools, landscaping, and decks
Financial losses due to business interruptions from flooding
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Buying flood insurance in Texas is a straightforward process, but choosing the right policy takes a little research. Whether you go through the NFIP or a private insurer, the steps are generally the same.
Here’s how to get started:
Determine your flood zone. Check FEMA’s Flood Map Service Center to find out which flood zone your home is in.
Compare NFIP and private options. The NFIP has strict coverage limits, while private insurers offer higher limits and customizable coverage that may better meet your needs — and budget.
Gather multiple quotes. Even if you don’t need more than the NFIP maximum coverage limits, comparing quotes for both options can help you find the best deal on your coverage needs.
Choose coverage limits and deductibles. Work with your agent to complete a flood-risk assessment, determine your coverage needs, and choose a deductible you’re comfortable paying if a flood occurs.
Account for waiting periods. The NFIP has a 30-day waiting period, while private insurers’ waiting periods are 15 days or less.
It’s a good idea to work with a licensed Texas agent who’s familiar with local flood risks. Make sure there’s no lapse in coverage if you’re switching companies. During hurricane season, insurers temporarily restrict the issuing of new policies, so timing is important.[11]
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We answered common questions people ask about Texas flood insurance.
Flood insurance in Texas averages $1,118 per year from the NFIP. Rates vary for private insurers based on your flood zone, coverage needs, and deductible.
Compare quotes from the NFIP and private insurers in Texas through the Write Your Own Program. Private insurers offer higher coverage limits and more coverage options, making them a better choice for high-value homes or if you want customizable coverage.
It depends. Flood insurance is mandatory in Texas if you have a federally backed mortgage and live in a high-risk flood zone. For everyone else, it’s optional, but it may be worth it, as homeowners insurance doesn’t cover flooding.
No. Homeowners insurance doesn’t cover flooding in Texas. You’ll need to buy a separate flood insurance policy from the NFIP or one of the 24 private insurers offering flood insurance in the Lone Star State if you want flood damage coverage.
NFIP flood insurance policies have a mandatory 30-day waiting period before they take effect. Private flood insurance policies have a maximum waiting period of 15 days, unless you’re buying a brand new home purchase or switching from another company.
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Mandy Sleight has over 15 years of insurance knowledge and expertise in auto, home, life, health, pet, supplemental benefits, and other insurance products. She’s a sought-after insurance expert, appearing in Bankrate.com, Moneygeek.com, U.S. News & World Report, Reviews.com, CNET, and other publications, and she's been writing for Compare.com since 2023.
Mandy uses her background and experience working for well-known insurance companies like State Farm and Nationwide Insurance to create engaging and easy-to-understand content that helps readers make smarter insurance choices that have a positive effect on their budgets and finances.
Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
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