Flood Insurance Texas

The most common natural disaster in the United States is flooding.  Although all of Texas is prone to extremely heavy rains and flooding, the geography of Austin and central Texas make it uniquely positioned to receive the brunt of tropical storms and air masses that result in intense rainfall; therefore, it makes sense to invest in flood insurance in Austin TX.  Most homeowner policies will not cover damage to your home from flooding or rising waters.

If you’re looking for flood insurance in Austin, you will need to purchase a separate flood policy in order to be protected from damage to your home from rising waters.

Flooding is not Uncommon in Austin

Texas leads the nation in flood related deaths and property damage, and holds 6 of the top 12 world records for rainfall in 48 hours or less.  In 1935, 22 inches of rain fell in Austin.

The well known picture of the house going over the Austin Dam in 1935 is real, not photoshopped!  According to “FloodSafety,” a non-profit interactive media and activism group on floods, Austin is considered “one of the most flood-prone regions in North America.” Major floods occurred in 2010 and 2013 causing damage to over 1,200 homes. Flooding has also occurred in 2014.  Since only 15% of American property owners have flood insurance,  thousands of homeowners discover too late that their insurance policies do not cover losses from flooding.

Related article: 5 Reasons Why You Should Invest in Flood Insurance

The Cost of Flooding is Enormous

Because of the prevalence of floods throughout the United States, the costs for claims tend to be large.

  • Billions of dollars are spent each year repairing damage from flooding throughout the United States.
  • The average cost of a flood claim is $48,000, which is more than most Americans can afford.

Floods Occur in Low Risk Areas

In some areas, homeowners are actually required to purchase flood insurance. Those are considered “high-risk zones” where flooding is common, but it’s important to understand that flooding still occurs in low- to moderate-risk zones.  In  2012, 25% of all flood claims filed were by homeowners in low risk areas.  So, even if you live in an area that hasn’t seen substantial flooding in a century, an intense storm like the Austin Halloween storm of 2013 can produce enough rain to cause flooding and damage to your property.

Related article: Texas Flood Insurance

Flood Insurance is Affordable

The good news is that If you do not live in a flood zone, flood insurance is relatively inexpensive. Most homeowners do not necessarily need the same level of flood coverage as dwelling coverage on their homeowner policy.  This is because a flood usually does not result in the loss of the entire building structure and all the contents, unlike a fire or tornado. Of course, there are always exceptions such as the catastrophic flooding from Hurricane Sandy and Katrina.

Flood Insurance Quotes / Flood Insurance Rate

If you do not live in a flood zone, flood insurance can be relatively inexpensive!  Most homeowners do not necessarily need the same level of flood coverage as dwelling coverage on their homeowner policy. This is because a flood usually does not result in the loss of the entire building structure and all the contents, unlike a fire or tornado. Of course, there are always exceptions such as the catastrophic flooding from Hurricane Sandy and Katrina.
Sample rates for flood insurance in Texas as of  June 2014 are as follows (assuming your home is not in a flood zone):
$50,000 in building coverage/$20,000 in contents coverage, the annual premium is $240.
$100,000 in building coverage/$40,000 in contents coverage, the annual premium is $312.
$150,000 in building coverage/$60,000 in contents coverage, the annual premium is $356
$250,000 in building coverage/$100,000 in contents coverage, the annual premium is $414.

Every Austin homeowner should consider purchasing flood insurance in Austin. Click here to see my Guide to Flood Insurance. If you have questions about flood insurance or flood zones, give me a call! I’ll be happy to help.

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Cheri Roman
Cheri Roman
I’m a graduate of the University of Texas & have a master’s degree in Business Administration from Texas A&M University, Corpus Christi. As a former teacher, I believe in educating my clients about insurance and investment options, and partnering with them to protect their family and achieve their financial goals.

1 Comment

  1. Andreea says:

    If you already have a Homeowner’s Policy and are linokog to add this coverage to the policy, you will be hard pressed to find a company that would be willing to insure less than full value. Even if you could they would certainly add a Co-Insurance clause. Even then the savings between $72 000 and $35 000 would be minimal. If your home is in a high risk flood area, why gamble with your familiy’s future? Any real flood would make your house uninhabitable to the point where it would have to be demolished and be rebuilt. Unless you have $37 000 lying around somewhere to make up the difference, it’s not worth it.

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