Texas Flood Insurance Overhaul: What You Need to Know

Texas flood insurance market overhauled

Texas residents who want to buy flood insurance will have to look for a new provider now that the state's insurer of last resort has stopped selling policies.

New flood insurance policies will be more expensive

The Texas Windstorm Insurance Association, known as TWIA, announced in November 2022 that it will stop selling new flood insurance policies, and will not renew expiring policies, starting in 2023.

Now, Texans who need flood insurance will have to buy it from private insurers, who are expected to charge higher rates than TWIA.

What is flood insurance?

Flood insurance is a type of insurance that protects your home and belongings from damage caused by flooding.

Federal law requires most mortgage lenders to require flood insurance for homes that are in high-risk flood areas. However, flood insurance is also a good idea for homes in moderate- and low-risk flood areas, as flooding can occur anywhere.

How to find a new flood insurance provider

If you need to buy flood insurance, you can do so through a private insurer.

To find a private insurer that sells flood insurance in Texas, you can use the National Flood Insurance Program's agent locator tool.

What to do if you can't afford flood insurance

If you can't afford flood insurance, you may be able to get help from the federal government.

The Federal Emergency Management Agency (FEMA) offers a program called the National Flood Insurance Program (NFIP), which provides flood insurance to homeowners and businesses at a subsidized rate.

To learn more about the NFIP, you can visit FEMA's website.