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The ���ϲ����� Information Institute (Triple-I) extends its deepest condolences to those impacted by the recent flooding in Texas Hill Country. As insurers continue to serve as financial first responders, it is critical for homeowners to understand the parameters of standard homeowners insurance—particularly regarding flood damage.

Floods are the most common and costly natural disasters in the United States, yet flood insurance remains one of the most underutilized forms of protection. Flood coverage generally must be purchased through a separate policy, most often provided by the National Flood ���ϲ����� Program (NFIP), which is managed by the Federal Emergency Management Agency (FEMA).

As of July 2024, NFIP data estimate the national flood insurance penetration rate is around 6%. In the area affected in Kerr County, Texas, the average take-up rate is just 2.5%.

Texas is one of the most flood-prone states in the country, given its exposure to hurricanes, tropical systems and severe convective storms. Rebuilding from these floods will require a sustained focus on strengthening community resilience. While insurance is a vital first step, resilience also demands attention to how and where homes and developments are built, so tragedies like this can be better predicted—and prevented.

About Flood ���ϲ�����:

• A common misconception is that standard homeowners, condo and renters insurance covers flood damage. It generally does not.
• Flood insurance can be purchased separately through the National Flood ���ϲ����� Program (NFIP) or from private insurers.
• Homes outside of high-risk flood zones can still flood. More than one-quarter of NFIP claims come from “low- to moderate-risk” areas.
• NFIP policies offer up to $250,000 in building coverage and $100,000 in contents coverage.
• Some private flood insurance policies offer higher limits, shorter waiting periods and broader coverage—important considerations for high-value properties.
• FEMA’s Risk Rating 2.0 more accurately reflects each home’s unique flood risk through updated underwriting and pricing methodologies.