Flood insurance in Texas

What counts as flood, and what doesn't

Flood insurance pays for damage from rising water coming in from outside. A burst pipe or overflowing appliance is water damage your home policy may cover, not flood. Sewer and drain backup is usually an add-on to a home policy, also separate from flood coverage.

Texas law uses a similar idea: the landlord flood notice defines flooding as inundation from overflowing inland or tidal waters, rapid runoff from a river, stream or drainage ditch, or excessive rainfall.

NFIP coverage and limits

Most flood policies are written through the National Flood Insurance Program (NFIP), sold by insurance companies and agents. FloodSmart lists these maximums:

• Home building: up to $250,000.
• Home contents: up to $100,000, bought separately from building coverage.
• Renters: up to $100,000 for belongings.
• Business building and contents: up to $500,000 each.

The 30-day wait and its exceptions

A new NFIP policy generally takes effect 30 days after purchase. FloodSmart lists exceptions: no wait when coverage is bought in connection with getting, increasing or renewing a mortgage, or when changing coverage at renewal, and a one-day wait for some properties newly mapped into a high-risk zone and for some flooding after wildfires. TWIA notes the waiting period applies to most flood policies, not just NFIP ones.

The practical rule: if heavy rain or a storm is already in the forecast, it's too late to buy flood coverage for that event.

NFIP or private flood?

TDI suggests asking your home insurance agent about a flood policy from an insurance company or the NFIP. Private flood policies exist alongside the NFIP, and their limits, waiting periods and terms vary by company. Compare them on the same points:

TWIA's flood requirement on the coast

If you need TWIA for wind coverage, you may have to carry flood insurance first. Under Insurance Code Section 2210.203 and TWIA's rules, flood coverage is required when all three apply: part of the property is in a V, VE or V1-V30 zone; NFIP coverage is available; and the structure was built, altered, remodeled or enlarged on or after September 1, 2009. Re-roofing or replacing same-size windows doesn't trigger it; an addition or enclosed garage does.

When required, TWIA says the flood amount must be at least the smallest of 90% of the TWIA coverage amount (or 90% of actual cash value if NFIP replacement cost isn't available) or the NFIP maximum.

Texas flood disclosures when you buy or rent

Property Code Section 5.008 requires most sellers of a single-dwelling home to give the buyer a written disclosure. The current form asks whether the property has flood insurance, has flooded, is wholly or partly in a 100-year or 500-year floodplain, floodway or flood pool, whether the seller has filed a flood claim with any insurer including the NFIP, and whether the seller received FEMA or SBA flood assistance. If you sign a contract without getting the notice, you may terminate within seven days after you receive it.

Property Code Section 92.0135 requires most landlords to tell tenants in writing whether they know the dwelling is in a 100-year floodplain and whether it has flooded in the past five years. The notice also warns that most tenant policies don't cover flood. If a landlord skips it and a flood destroys at least half the value of your belongings, you can end the lease within 30 days of the loss. Leases shorter than 30 days are exempt.

How to check your risk and shop

• Look up your address on FEMA's flood map; the disclosure forms point you there too.
• Ask your lender whether flood is required. TDI says lenders require it in designated flood zones.
• Ask for building and contents quotes separately, and for renters, contents-only.
• If you're in the TWIA area, confirm whether the flood requirement applies before applying.
• Buy before storm season, given the 30-day wait.