Flood Insurance in North Texas: What Homeowners Need to Know
If you think your homeowners insurance covers flood damage, you’re not alone—and you’re not correct. This common misconception leaves thousands of North Texas homeowners financially vulnerable when heavy rains turn streets into rivers and send water into homes.
Collin County may not sit on the coast, but flash flooding remains a significant threat. The region’s rapid development, clay soil that resists water absorption, and increasingly intense storm patterns combine to create flood risks that many residents underestimate.
Why Standard Homeowners Insurance Doesn’t Cover Floods
Standard homeowners policies specifically exclude flood damage. This isn’t fine print—it’s a fundamental aspect of how insurance works. Flood damage is covered separately through the National Flood Insurance Program (NFIP) or private flood insurers.
The exclusion exists because flooding affects entire neighborhoods simultaneously, creating catastrophic losses that would bankrupt traditional insurance models. The NFIP was created specifically to make flood coverage available where private markets couldn’t sustainably operate.
Many homeowners discover this exclusion only after filing a claim, facing devastating financial consequences when their policy denies coverage for thousands of dollars in water damage.
North Texas Flood Risks Are Real
Think flooding is only a coastal problem? Consider these facts about North Texas:
Recent flooding history:
- May 2015: Record rainfall caused widespread flooding across Collin County
- 2016-2019: Multiple flash flood events in Plano, Frisco, and McKinney
- 2021: Winter storm Uri caused widespread pipe bursts and water damage (which IS covered by homeowners insurance, unlike external flooding)
Risk factors in Collin County:
- Rapid development replacing absorbent land with impervious surfaces
- Creek and drainage systems that can overflow during heavy storms
- Low-lying areas near Lake Lavon and various creeks
- Clay soil that doesn’t absorb water well
Even homes outside designated flood zones experience flooding. In fact, over 20% of flood claims come from properties in low-risk zones.
Understanding Flood Zones and Your Risk
FEMA maps divide areas into flood zones that determine risk levels and insurance requirements:
High-risk zones (A and V zones):
- Federally-backed mortgages require flood insurance
- Higher premiums due to elevated risk
- May qualify for Preferred Risk Policy discounts if no flood history
Moderate-to-low risk zones (B, C, and X zones):
- Flood insurance not required but recommended
- Lower premiums available through Preferred Risk Policies
- Still experience significant flood claims
Check your property’s flood zone designation at FEMA’s Flood Map Service Center or ask your insurance agent to look it up for you.
What Flood Insurance Covers
NFIP flood insurance provides two types of coverage:
Building coverage (up to $250,000 for residential):
- Foundation and structural elements
- Electrical and plumbing systems
- HVAC equipment, water heaters, and built-in appliances
- Permanently installed carpeting, cabinets, and paneling
- Detached garages (limited coverage)
Contents coverage (up to $100,000 for residential):
- Furniture and personal belongings
- Clothing and electronics
- Portable appliances
- Curtains and area rugs
Important exclusions:
- Basement improvements (drywall, flooring, most personal property)
- Currency, precious metals, and valuable papers
- Living expenses during displacement
- Vehicles (covered under auto comprehensive)
Private flood insurers often offer higher limits and additional coverages not available through NFIP.
The Waiting Period You Need to Know About
Here’s a critical detail that catches many homeowners off guard: NFIP flood insurance has a 30-day waiting period before coverage takes effect. You cannot buy flood insurance when a storm is approaching and expect immediate coverage.
This waiting period means you need to plan ahead. Don’t wait until storm season to investigate your options—by then, it may be too late to protect yourself.
Some private flood insurers offer shorter waiting periods (as little as 10-14 days), though they may have higher premiums.
How Much Does Flood Insurance Cost?
Flood insurance costs vary based on your flood zone, building characteristics, coverage amounts, and deductible choices. In lower-risk zones, annual premiums often range from $400 to $800 for standard coverage.
Factors affecting your premium:
- Flood zone designation
- Building age and construction type
- Lowest floor elevation relative to base flood elevation
- Coverage amounts and deductible choices
- Flood history of the property
For many Collin County homeowners, flood insurance costs less than a monthly streaming subscription—an affordable investment considering the potential losses.
Protect Your Home Before the Next Storm
North Texas weather remains unpredictable, and development continues changing how water flows across the landscape. Homes that never flooded before may face new risks as neighborhoods upstream add more pavement and structures.
Review your current homeowners policy to understand exactly what it covers. Then talk to your insurance agent about adding flood coverage to fill this critical gap in your protection.
Don’t wait for the next big storm to discover you’re unprotected. Contact Collin County Insurance Group today to get a flood insurance quote and learn how to protect your home from this commonly overlooked risk.