Homeowners, renters and small businesses should call their insurance agent and get a quote for flood insurance. When making a decision about whether to purchase, they should take into account that flooding can and does occur outside of mapped floodplains and high-risk areas.

Because the City of Austin participates in the National Flood Insurance Program, federally-backed flood insurance is available to everyone in Austin. Most Austin policies are now eligible for a 25 percent discount when they are renewed. The average annual policy in Austin is $670, but lower risk policies cost less.

A standalone flood insurance policy is needed for coverage of damages caused by flooding. Those interested should talk to their insurance agents about the type of coverage that would be appropriate for their situation. The policy could cover the structure or the contents or both. There are also policies for businesses to cover their inventory and other assets.

Without flood insurance, people are responsible to pay for any damages caused by flooding to their property. In some cases, disaster recovery resources may be available from the federal government when there is a large-scale emergency or disaster and disaster cost recovery thresholds are met. Learn more about thresholds, public assistance and other cost recovery resources from FEMA and State of Texas.

“I’ve talked to so many people over the years who have experienced flooding, and their stories are just devastating to hear,” said Jorge Morales, director of Watershed Protection. “If you’ve got room in your budget, I highly encourage everyone to at least think about flood insurance. Call your agent and get a quote. It may cost less than expected, especially if you’re outside the mapped floodplain. Storms are only getting worse, and we do sometimes see them overwhelm our drainage systems.”

Flooding can be expensive, with the average flood insurance claim in Austin at $21,000 as of 2021. For small businesses, natural disasters can cause them to close. According to FEMA, 25% of businesses never reopen after a natural disaster. Adequate insurance can help with recovery.

Almost all flood insurance is through the National Flood Insurance Program. FEMA is offering a 25 percent discount for most policies in Austin, an increase in the previous discount of 20 percent. The discount is due to an improvement in Austin’s score in FEMA’s Community Rating System. FEMA takes a variety of City activities and programs into account when determining the score. The most significant items contributing to Austin’s score are:

• The large area of Austin's floodplain preserved as greenspace through our parks, trails and other protected uses.
• Austin’s extensive water quality regulations and programs.
• Austin’s stringent stormwater management requirements.
• Buyouts of properties at risk of flooding
• Higher regulatory standards for development activity in the floodplain

It is important to note that some Austin residents will continue to see increases in their flood insurance premiums in spite of Austin’s new score. Residents with subsidized policies are not eligible for this discount. This is due to FEMA’s implementation of Risk Rating 2.0 in March 2022, which is gradually removing subsidies from existing policies. Rates for people with subsidized policies are increasing 18% per year until they reach their new unsubsidized rate. 

About Watershed Protection 

The City of Austin Watershed Protection Department protects lives, property, and the environment of our community by reducing the impact of flooding, erosion, and water pollution. Visit AustinTexas.gov/Watershed to learn more.