In Texas the least expensive way to get flood insurance is from the National Flood Insurance Program (NFIP). Congress created the NFIP in 1968. Private companies write policies through this program to eligible property owners.
Homeowners can purchase up to $250,000 of building coverage's. For businesses the building coverage limit is $500,000. Contents coverage is also available for up to $100,000 for homeowners or renters and up to $500,000 for businesses. If you want more coverage than the NFIP offers some private companies offer a separate policy for the additional amount.
The NFIP has created maps to determine the amount of flood risk a home or business may have. The lowest risk places are considered to be in the B or X flood zones. If you are in B or X the rate is very low for flood coverage. Here are a few examples of B/X preferred rates:
$20,000 contents only for $116 per year
$50,000 contents only for $156 per year
$50,000 building plus $20,000 contents for $180 per year
$100,000 building plus $40,000 contents for $233 per year
If your property is in a higher risk area the rate is higher. For these areas you will probably be required to get a flood policy if there is a mortgage on the property. An elevation survey (ES) may be needed for a policy in these areas. Even if an elevation survey is not required for coverage it is advisable to get one because it will usually result in a discounted rate. (There is no benefit from an EC if you are in the B/X flood zone)
Floods are the #1 natural disaster. In the last 10 years floods have caused over 24 billion in losses. Homeowner's policies do not cover flood damage. The coverage is usually inexpensive so consider protecting your property with a policy!
Texas residents can get more information at my website.