Flood Insurance in Texas (2026 Guide) – Costs, Coverage, and What Homeowners Must Know

Texas experiences more flooding than any other state, even outside FEMA high-risk zones. Over the last few years, Aqua Tree Insurance has helped hundreds of Texas homeowners understand what flood insurance really covers, what it costs, and how to avoid expensive mistakes.

If you live in Houston, Dallas, Austin, San Antonio, Corpus Christi, or anywhere near the Gulf Coast, this guide will walk you through everything you need to know.

How Much Is Flood Insurance in Texas?

Flood insurance in Texas typically ranges between $550-$1,200 per year, depending on:

• Flood zone (FEMA risk level)

• Year built & foundation type

• Elevation certificate (if available)

• Coverage limits (Building + Contents)

• NFIP vs. private market

Private flood insurance can be cheaper and offer higher limits – up to $1M+

Quick Example (Realistic Texas Scenario)

• 2,000 sqft home in a low-risk zone (X zone): $550-$785/yr

• Home in a moderate-risk zone (B or C): $700-$900/yr

• High-risk zone (AE/V zone): $1,200-$3,000+/yr

What about monthly cost?

Most policies cost $45-$99 per month.

According to recent NFIP pricing data shared by LendingTree, the average flood insurance premium in Texas is around $783/year (about $65/month). (Source: LendingTree Flood Insurance Texas)

Is Flood Insurance Worth It in Texas?

Yes – absolutely.

Over 25% of all flood claims happen in low-risk zones, where homeowners are NOT required by lenders to carry coverage.

I’ve personally seen homeowners in Sugar Land, Cypress, Pearland, and North Houston get flooded even though FEMA labeled their homes “low risk.”

If you don’t have flood insurance:

• FEMA does NOT cover full repairs

• Federal assistance averages $5,000–$8,000

• A 1-inch flood can cost $20,000–$30,000 in damage

Flood insurance is often the cheapest way to protect your home.

What Is the 80% Rule for Flood Insurance?

NFIP (FEMA) uses a version of the 80% rule for Replacement Cost (RCV):

To receive full replacement cost coverage on your building, you must insure:

• At least 80% of the home’s replacement cost, OR

• The maximum available NFIP limit ($250,000)

If not → claims are paid Actual Cash Value (ACV) (meaning depreciation deducted).

Important:

Contents are always ACV under NFIP.

Private flood markets may offer RCV for contents depending on carrier.

If you want to learn more about how replacement cost works in a homeowners policy, you can review our full guide to Texas Homeowners Insurance.

How Hard Is It to Get Flood Insurance in Texas?

It’s actually very easy:

• No home inspection required

• No 4-point or wind mitigation needed

• NFIP accepts most homes with no underwriting issues

• Private flood insurers approve in same day

Waiting period:

• NFIP: 30 days unless lender-required

• Private: Often immediate or 7-15 days

What Flood Insurance Does NOT Cover

• Swimming pools

• Fences

• Decks/patios

• Temporary housing (Loss of Use)

• Cars

• Basement improvements (flooring, drywall, etc.) under NFIP rules

Private carriers may offer more extended coverage, great upsell point for customers.

Many homeowners are surprised to learn that FEMA flood insurance excludes things like fences, decks, and temporary housing. You can view official FEMA flood maps here: FEMA Flood Map Service Center

How Much Flood Insurance Do You Really Need?

General rule:

Building coverage = Replacement cost of home
Contents = Value of belongings inside

NFIP caps at:

• $250,000 building

• $100,000 contents

Private policies can go higher if needed.

If you own a rental property or short-term rental, flood insurance works differently. Review our Landlord Insurance Texas Guide for details.

Alternatives to Flood Insurance

• Disaster loans (must repay)

• FEMA limited assistance

• Self-insurance (risky)

• Private flood excess policies

Flood insurance is usually the most affordable and reliable option.

📘 Have more questions? Check our detailed FAQ here: Texas Flood Insurance FAQ 2026

For a personalized flood insurance quote, you can call 832-699-6838 or reach us through our Contact Page