Flood Insurance Scarcity in Texas Amid Rising Flood Risks

River flood warnings continue downstream along the Frio and Nueces River basins, with significant flooding expected throughout the week. Amidst these conditions, a critical issue is emerging — the scarcity of flood insurance among Texas homeowners. Currently, only about seven percent have this essential coverage.

A common misconception persists that standard homeowners insurance policies cover flood damage, despite its clear exclusion. Many mistakenly believe flood insurance is unnecessary if residing outside high-risk zones. This misunderstanding leaves homeowners vulnerable during flood events.

Challenges in Securing Flood Insurance

The News 4 I-Team explores the rising difficulty and cost of obtaining flood insurance. Texas's population boom has resulted in increased property development, with some insurers opting out of providing flood coverage. This shift has consequently driven insurance premiums up.

Residents in flood-prone areas such as Kerr County, Boerne, and Uvalde County often report lacking flood insurance. William Langham, a Uvalde resident, recounted his experience: "We filed a claim with our home insurance, but it was quickly denied since none of this neighborhood is in a designated floodplain."

Misconceptions and New Risk Assessments

Many homeowners eschew purchasing flood insurance if they live outside zones indicated in the Federal Emergency Management Agency's (FEMA) 100-year floodplain map. Yet, Mistie Hinote from the Texas Department of Insurance highlights that "32 percent of claims come from outside high-risk areas. We stress that where it rains, it can flood."

Some homeowners mistakenly assume their policies include flood protection, unaware it must be purchased separately. While some insurers might offer a distinct flood policy, this often necessitates obtaining coverage through the National Flood Insurance Program (NFIP). Hinote advises starting with one's insurer to explore flood insurance options before turning to the NFIP, described as an "insurer of last resort."

Following a 2021 risk assessment update under the Biden administration, FEMA's adjustments led to increased premiums. In Texas, flood insurance costs typically range from $700 to $850 annually. Flooded vehicles are another concern, with comprehensive auto insurance potentially covering such damage. In Kerr County, last year’s floods left many without flood insurance, relying on charity and donations for rebuilding—a situation potentially repeating this year.