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Torrential rains over the July 4th weekend brought unprecedented devastation to Central Texas, where the equivalent of four months’ worth of rain fell in just a few hours in the area. The Guadalupe River reportedly surged more than 20 feet, sweeping away homes, cars, and entire cabins in its path. Communities have been left reeling as floodwaters destroyed countless homes thus far, displacing residents across the region.
As of Monday, the death toll stands at over 80, with dozens still missing—many of them children, sadly. In Kerr County, one of the hardest-hit areas, several campers and a counselor from Camp Mystic remain unaccounted for, according to CNN. First responders are currently still on the scene, digging through debris while military drones from the Texas Air National Guard scan from above.
Unfortunately, the flooding threat is far from over. The National Weather Service has issued a flash flood warning for parts of the Texas Hill Country, with additional rainfall of up to 10 inches expected on Monday.
Given the situation, President Donald Trump issued a Major Disaster Declaration for Kerr County on Sunday, activating the Federal Emergency Management Agency to help coordinate recovery efforts. Meanwhile, Texas Gov. Greg Abbott has informed those affected that they can begin reporting property damage through the Individual State of Texas Assessment Tool (iSTAT).
The scale of the damage is a sobering reminder of Texas’ growing flood exposure—and how ill-prepared many communities remain. According to Neptune Flood’s latest research, more than 2.1 million properties across Texas already face flood risk, and over 200,000 are projected to flood with near certainty in the coming decades. Despite this, only 7% of homes statewide carry flood insurance. In major inland counties like Dallas and Bexar, that number falls below 1%, even as flooding outside FEMA-designated risk zones becomes increasingly common.
The scope of the destruction—and the unpredictability of future weather—has reignited questions around flood insurance coverage and what protection homeowners truly have when the waters rise.
Flood insurance coverage in Texas
“Texas faces a clear and growing flood risk, yet millions of properties remain without adequate insurance coverage,” says Matt Duffy, president of Neptune. He notes that the Neptune report released in May 2025 on Texas’ growing flood insurance gap “underscores the scale of the challenge and the need to improve both awareness and access to flood protection. As flood risk continues to rise due to climate change and development patterns, and with an active 2025 hurricane season on the horizon, addressing these gaps remains a critical priority for homeowners, insurers, and policymakers alike.”
“Regular home insurance doesn’t typically cover flood coverage, and it usually is an add-on that you have to buy in a separate private flood policy, or through FEMA’s National Flood Insurance Program,” explains attorney Nishi Kothari, with Brasher Law Firm out of Houston.
According to the First Street Foundation, more than 2.1 million properties across Texas are currently at risk of flooding, with 1.15 million facing at least a 1% annual chance of inundation. Despite this, FEMA maps identify only 860,000 at-risk properties, underscoring a significant gap in risk recognition. The Texas Water Development Board projects that by 2050, an additional 2.6 million residents and 740,000 new buildings will be situated in high-risk flood areas—driven by population growth, climate change, and ongoing development.
While the total damage in Central Texas remains to be calculated after the July floods, insurance coverage at the time is alarmingly low despite the frequency and scale of flood events, according to Neptune. Only 7% of residential properties in Texas have flood insurance, and in inland counties such as Dallas, Denton, and Bexar, that figure drops below 1%. Even in FEMA-designated high-risk zones, just 28% of homes are insured.
The price of coverage—and the reality of losing it
Flood insurance costs an average of $783 a year for policies obtained through the government-backed National Flood Insurance Program (NFIP) in Texas, according to LendingTree. However, homeowners in the state’s high-risk flood zones pay 52% more for NFIP flood insurance than those in moderate- and low-risk areas.
According to Neptune’s reporting, over 52% of NFIP claims filed in Texas since 2005 have come from outside FEMA’s mapped high-risk areas.
“The NFIP was formed in response to a need for flood insurance, which often was either unavailable or unaffordable on the private insurance market,” adds Kothari. “When catastrophic floods hit, they can cause millions or billions of dollars in damages (think of Hurricane Harvey, Katrina, or Sandy as examples). And so for regular insurance companies, flood is a massive risk and a very pricey one. As a result, Congress enacted the NFIP program in 1968. Most folks who do get flood insurance get it through NFIP.”
While NFIP coverage remains available to policyholders today, there’s growing concern about the program’s future. NFIP is currently set to expire on Sept. 30, raising fears of disruption for millions who rely on it—especially in the wake of the recent disaster.
However, Democratic U.S. Rep. Jared Moskowitz introduced legislation to extend the program through 2026 earlier this year. He’s joined by five other members of Congress, including Texas Rep. Marc A. Veasey, to push the extension through before the deadline. This will hopefully ensure that not only will the July flood victims receive assistance, but that future homeowners will receive help as well.
Will insurance cover the damage from the Texas floods?
In most cases where homeowners have purchased flood insurance, the answer is yes.
“The damages from those floods will only be covered by flood insurance specifically,” explains
Ted Patestos, CEO and founder of Tiger Adjusters, “and possibly for the businesses that were destroyed. There may be coverage for the business interruption claims (lost profits and extra expenses), because those policies treat events like this a little differently.”
But again, as illustrated, with so many going without flood insurance for so long, it’ll be hard to know what will be covered for those without. That’s why it’s crucial to add flood coverage to your budget.
“As this week’s events have shown, Texas is extremely vulnerable to flooding,” explains Max-Dugan Knight, a climate data scientist at Deep Sky Research. “If you don’t live on the coast, you may think you are relatively safe. But tropical storms are travelling farther inland and dropping more water than ever before. FEMA-designated zones requiring flood insurance may well be out of date—75% of flooded homes in Harris County were outside the 100-year floodplain during Hurricane Harvey. Climate change and Texas’ geography combine to make even previously safe areas vulnerable to flooding.”
How to file a claim if you have flood insurance
For those who do have flood insurance—whether through a private home insurance provider or the NFIP—taking swift action is critical.
Policyholders should begin the claims process as soon as it’s safe to do so, as most flood insurance claims must be filed within 60 days of the incident. This timeline includes documenting the damage, taking photos before starting any cleanup, and submitting a “Proof of Loss” form to the insurer.
The Texas Department of Insurance urges residents to contact their insurance company promptly. For those who are unable to reach their insurer due to displacement or service disruptions, help is available by calling the state’s consumer helpline at 1-800-252-3439.
But no matter what, the process of rebuilding will take time.
“There’s no one-size-fits-all answer as to how long it can take to build back,” adds Kothari. “After Hurricane Harvey, our firm went out to houses and helped muck out houses for days. But rebuilding is a long process that can take months or years even.”