The recent flooding across Texas has left communities reeling and raised urgent questions about how homeowners can protect themselves from devastating losses. This latest disaster didn’t happen along the coast, but in inland communities where few homeowners had flood insurance, underscoring a widespread and costly coverage gap. Estimates place the economic toll of the floods at a staggering $18–22 billion. And yet, only about 7% of residential properties in Texas are covered by flood insurance. In some inland areas, that number dips below 1%. Nationwide, only 4% of homeowners are protected through the National Flood Insurance Program (NFIP). Clearly, there’s a gap between risk and reality.
Why Flood Coverage is Often Overlooked
If you're like many homeowners, you may assume that because you don’t live near the coast—or because your property isn’t in a designated flood zone—you don’t need flood insurance. But flooding doesn’t follow boundaries, and it doesn’t always take a major hurricane to create serious damage. Many Texans impacted by this year’s flooding weren’t in high-risk areas. They weren’t required by lenders to carry flood insurance. And for those who own their homes outright, no one was mandating coverage.
Some common reasons homeowners go without flood insurance:
- They’ve never experienced a flood, so they assume it won’t happen to them.
- They’re focused on affordability, especially in states where homeowner’s insurance is already expensive.
- They’re unaware that most homeowner’s policies explicitly exclude flood damage.
- Their lender doesn’t require it, especially outside of high-risk zones.
But as the Texas floods have shown, low risk is not no risk.
Flood Exposure if Broader Than You Think
Flooding is no longer just a coastal concern. With more intense and frequent storms, overburdened infrastructure, and unpredictable rainfall patterns, the chance of flooding in "low-risk" areas is growing. You also don’t need to live near a river or shoreline to be impacted. In many Texas communities, overwhelmed stormwater systems and prolonged rainfall turned residential streets into rivers. Inland flooding is a real and rising threat, and most homeowners simply aren’t prepared.
What This Means for Homeowners
Even if your home is in a zone rated as low risk, it’s worth asking: Could I afford to rebuild or repair after a flood without coverage?
Here’s what you should know:
- A standard flood insurance policy through the NFIP can cover up to $250,000 for the structure and $100,000 for contents.
- Policies are relatively affordable, especially in lower-risk zones.
- Private flood insurers can offer additional protection for higher-value properties.
And while premiums may fluctuate in response to recent events, the financial protection flood insurance offers far outweighs the risk of going without.
How B. F. Saul Insurance Can Help
At B. F. Saul Insurance, we believe insurance should never be one-size-fits-all. Our advisors work with homeowners across all flood zones, offering:
- Independent guidance across a wide range of carriers and coverage options.
- Expert insight to help you understand your true risk exposure.
- Tailored solutions to protect your primary or seasonal home.
Whether you're exploring options for a new property or reassessing your current coverage, contact us today to learn how we can help you build a smarter, stronger insurance strategy.
FAQs About Flood Insurance
What does flood insurance cover?
Flood insurance typically covers damage to your home’s structure and your personal belongings caused by rising water. This includes flooding from heavy rain, overflowing rivers, and stormwater runoff. Coverage limits vary, but National Flood Insurance Program (NFIP) policies offer up to $250,000 for the structure and $100,000 for contents.
Is flood damage covered by homeowner’s insurance?
No, standard homeowner’s insurance policies do not cover flood damage. You need a separate flood insurance policy, either through the NFIP or a private insurer, to be financially protected.
Do I need flood insurance if I don’t live in a flood zone?
Yes. More than 25% of all flood claims come from properties located outside of high-risk flood zones. The recent Texas flooding proves that inland communities are not immune to severe flood events.
How much does flood insurance cost in Texas?
The cost of flood insurance in Texas varies based on your home’s location, elevation, and risk profile. In low-risk areas, premiums may be surprisingly affordable—sometimes under $500 annually. An insurance advisor like B. F. Saul Insurance can help you compare rates and coverage options.
How can I buy flood insurance?
You can purchase flood insurance through the NFIP or from a private flood insurance provider. Insurance advisors like B. F. Saul Insurance work with both to find the best solution based on your needs and location.
Lanie Raphael is a seasoned insurance professional with over 30 years of experience in the industry, with experience in both commercial and high-net-worth insurance. Throughout her career, Lanie has held executive-level roles at prominent insurance companies such as Fireman's Fund, AIG, and ACE Private Risk Service in a variety of disciplines including risk management, product development, operations, and marketing. In the past decade, she transitioned to the independent agency side, assuming leadership roles that involved direct client interaction and working closely with referral sources. As president, she is responsible for leading all aspects of financial reporting and budgeting, business development, and executive recruiting at B. F. Saul Insurance.
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