Neptune Flood: Texas at Risk of Flood Insurance Shortfall
(Flooding during Hurricane Harvey, courtesy of IrinaK/shutterstock)
Neptune Flood, St. Petersburg, Fla., released an analysis of flood risk for Texas, finding that only 7% of residential properties statewide have flood insurance, despite considerable chance of flooding.
Neptune pointed to First Street Foundation data that indicates there are 2.1 million properties in the state at risk of flood exposure over the next 30 years, and 1.15 million homes face at least a 1% annual chance of flooding.
And, by 2050, the Texas Water Development Board expects migration, development trends and climate intensification to lead to 740,000 more buildings being deemed in high flood risk areas.
Texas has nearly every major flooding risk factor, the report outlines, including 1,200 miles of Gulf coastline vulnerable to storms, expansive low-lying coastal plains, rapidly urbanizing inland cities and increasingly erratic weather patterns.
Recent major hurricanes include Ike, Harvey and Beryl, all of which generated significant flood insurance claims.
However, only 7% of residential properties in the state have flood insurance, and in major inland metros such as Dallas, Denton and Bexar, coverage is below 1%. In FEMA-designated high-risk zones, only 28% of residential buildings have flood insurance coverage.
Since the launch of Risk Rating 2.0 in 2021, average flood insurance premiums in Texas have risen 35%, and the number of buildings covered have dropped by nearly a third.
“Texas faces a clear and growing flood risk, yet millions of properties remain without adequate insurance coverage,” said Matt Duffy, President of Neptune. “This report 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.”
