Flood insurance guide
Flood Insurance in Texas: NFIP, Private Options, and State Facts
Texas floods on the coast and far inland. Here is how flood insurance actually works here, in plain English.
The two ways to buy flood insurance in Texas
The NFIP (federal). The National Flood Insurance Program is the federal flood program. Congress created it in 1968 and FEMA runs it. You buy NFIP policies through a licensed insurance agent, and many are sold by private companies that partner with the program under what FEMA calls Write Your Own. The coverage, rates, and rules are the same no matter which company sells the policy.
NFIP limits are set by law. For a single family home, up to $250,000 for the building and up to $100,000 for the contents. For a business, up to $500,000 for the building and up to $500,000 for the contents. Most new NFIP policies take effect 30 days after you buy. The wait is waived when the policy is bought in connection with a loan closing, and it drops to one day when a revised FEMA map puts your property in a high risk zone.
Private flood insurance. Private flood insurers are regulated by the Texas Department of Insurance. A private policy may offer higher limits, different deductibles, or features like temporary living costs, and waiting periods are often shorter. Federal rules require regulated lenders to accept a private policy that meets the federal definition of private flood insurance, so a qualifying private policy can satisfy a lender the same way an NFIP policy does. The Texas Department of Insurance runs a consumer Help Line at 1-800-252-3439 for insurance questions, and NFIP policyholders report flood claims at 1-800-638-6620.
Texas specifics: who to call, and the wind vs. water split
Texas does not operate its own flood insurance program. Flood coverage comes from the NFIP or private flood insurers, both overseen at the state level by the Texas Department of Insurance (TDI).
The split that trips up Texans after hurricanes: wind and water are separate claims. A single storm can mean a flood claim through your NFIP or private flood policy and a windstorm claim through your homeowners policy. On the coast, wind and hail coverage may come through the Texas Windstorm Insurance Association (TWIA), which covers wind and hail, not flood. After a storm, figure out which policy covers which damage before you file, and call TDI's Help Line at 1-800-252-3439 if your carrier, agent, or adjuster is not responding.
Texas-sized reminder: homes well outside mapped high risk zones have flooded in major Texas storms. A lender requirement is not the same as a risk assessment.
When your lender requires flood insurance
Federal law requires flood insurance when a property sits in a Special Flood Hazard Area, the high risk zone on FEMA's map, and the mortgage is backed by the federal government or made by a federally regulated lender. This mandatory purchase rule works the same in Texas as in every state.
Lenders typically require coverage of at least the loan balance or the maximum NFIP limit, and they are listed on the policy as the mortgagee. Most lenders escrow the premium into the monthly payment, and if the loan is sold, the requirement follows the loan. A private policy that meets the federal definition can count, but the lender has to agree it qualifies, so send the declarations page to the lender before closing.
Because FEMA redraws maps over time, a home that was outside the high risk zone when you bought it can be mapped in later. Lenders recheck, and a new map can trigger a new requirement at renewal or refinance. Confirm your current zone with a licensed agent, not just the map from closing day.
How flood claims work
Report it fast. Call your agent or the company that sold the policy as soon as you can. With an NFIP policy, an adjuster typically calls within 24 to 48 hours to schedule a visit.
Document before the adjuster arrives. Photograph everything, move damaged items aside without throwing them away until the adjuster has seen them, and keep receipts for emergency repairs. The adjuster will measure, photograph, and note direct flood damage, and will hand you a suggested Proof of Loss. The adjuster does not approve or deny the claim.
The Proof of Loss deadline matters. You must review, sign, and send the Proof of Loss to your insurer within 60 days of the loss. Payment usually follows once the insurer agrees on the amount and receives your signed Proof of Loss. Building checks are typically made out to you and your mortgage holder together.
If you find more damage later, you can file a supplemental claim. If your claim is denied, you can appeal directly to FEMA within 60 days of the denial letter. After a major event, insurers are sometimes authorized to issue advance payments, so ask your agent. An advance can help you start repairs sooner.
What to do next
Three steps, in order. None of them cost anything.
Quick answers
Does my Texas homeowners policy cover flood from a hurricane?
No. Homeowners, renters, and dwelling policies do not cover flood damage from rising waters. TDI's guidance is explicit on this. Flood needs its own policy, and hurricane wind damage goes through your homeowners or windstorm policy.
Where do I report a flood claim in Texas?
Report NFIP claims to the NFIP at 1-800-638-6620, or call the agent or company that sold your policy. For problems with any insurer, TDI's Help Line is 1-800-252-3439.