The 411 on Purchasing Flood Insurance

Melissa Hill


Key Points Regarding Flood Insurance

It's important to understand your options, coverage limits, and policy terms to ensure that you have the right level of protection for your property. Below are some key points regarding flood insurance in Texas:

  • Unfortunately, flood insurance is not included in homeowners or renters insurance policies. You will need to purchase a separate policy for flood coverage.
  • The National Flood Insurance Program (NFIP) provides flood insurance policies in Texas, but the policy can be purchased through an insurance agent. Premiums are based on the home's location and flood zoning. 
  • There is a 30 day wait period before a flood insurance policy takes effect.  
  • There are limits to how much flood insurance you can purchase through the NFIP. For residential properties, the maximum coverage limit is $250,000 for the structure and $100,000 for personal property. 
  • In addition to the NFIP, some private insurance companies may offer flood insurance policies in Texas which may have different terms and coverage limits. It is best to shop around and compare the options. 
  • Flood zones in Texas are designated by the Federal Emergency Management Agency (FEMA) based on the likelihood of flooding in a given area. If your property is in a high-risk flood zone, you may be required to purchase flood insurance from your mortgage lender. 
  • Finally, it's important to note that flood insurance does not cover all types of damage caused by flooding. Damage to your septic system or landscaping may not be covered. Reading the specific terms of the policy carefully is key to understanding your coverage.


Insurance companies study a property’s past claims to decide how much you’ll pay for homeowners insurance. This data is obtained from a  Comprehensive Loss Underwriting Exchange (CLUE) Report.

A CLUE report shows the claims filed for any house or car for the past seven years. It lists claims on your home or vehicle, even if you weren’t the owner at the time. Insurance companies can report information to CLUE when you file a claim.

They report:

  • Date of loss.
  • Loss type.
  • Amount paid on the claim.

The report will include the policy number, claim number, and insurance company. Companies are not allowed to report any questions asked by the consumer about the policy or deductible, so clarify whether it is a new claim or only a question about the policy.

A homeowner can obtain a free copy of the CLUE report each year by contacting LexisNexis. Once on their website, click on the “Request a Consumer Disclosure Report” button. Disputing wrong information or adding an explanation can also be done on their website.

If you’re buying a home, you can ask the owner to show you a CLUE report for the property. If you’re selling a house, a CLUE report can help potential buyers know the condition of the house they’re buying. 

For addtional questions, contact Melissa Hill at 281-450-3623 or a trusted insurance agent. 


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