Federal Requirements
Flood insurance is not universally mandatory in Texas, but it is required in specific situations. If your property is located in a high-risk flood zone (typically designated as Special Flood Hazard Areas or "A" and "V" zones on FEMA flood maps) AND you have a federally backed mortgage, flood insurance is mandatory. This requirement comes from federal law, not state law, and applies to all states, not just Texas.
Mortgage Lender Requirements
Even with non-federally backed loans, many mortgage lenders request flood insurance for properties in high-risk flood zones as a condition of the loan. This is to safeguard their financial investment in your property. If you own your home outright with no mortgage requirements, there is generally no legal requirement to carry flood insurance, regardless of your flood zone.
Outside High-Risk Zones
For properties outside designated high-risk flood zones, flood insurance is usually optional but still suggested. Texas experiences frequent flooding episodes, and approximately 25% of flood insurance claims typically come from properties in moderate to low-risk areas.
Important Considerations for Texas Homeowners
Texas is particularly vulnerable to flooding because of its coastal location, large river systems, and severe weather patterns. Hurricane Harvey in 2017 demonstrated that flooding can occur well beyond designated high-risk zones.
Standard homeowners insurance policies do not cover flood damage. Without specific flood insurance, homeowners must bear the full financial burden of flood-related repairs.
The Texas Department of Insurance suggests flood insurance for all homeowners, regardless of mandatory requirements, due to the state's high flood risk.
Obtaining Coverage
The National Flood Insurance Program (NFIP) and some private providers are the main ways to get flood insurance. Usually, you have to wait 30 days before your coverage starts, so it's best not to wait until storm season to buy insurance.
Keep in mind that even if your property doesn't officially need flood insurance, the financial protection it offers may be very important, given how often floods happen in Texas.