Central Texas Floods Cause $1.1B in Residential Damage, Expose Insurance Gaps

Cotality estimates $1.1 billion in damage to residential buildings from the July 4, 2025, Central Texas flash floods, with the National Flood Insurance Program (NFIP) expected to provide up to $135 million in recoveries. Low flood insurance penetration in the affected counties—Tom Green, Travis, Kerr, Williamson, and Burnet—means most homeowners will bear reconstruction costs, highlighting a significant insurance gap. Over 38,600 residential structures were potentially impacted, but fewer than 14,000 NFIP policies are active in the nine counties eligible for federal assistance. The floods, classified as a 1,000-year rainfall event, exposed the limitations of current flood zone mapping, which often underestimates risks in “low risk” areas due to reliance on less precise models. Improved flood mapping and hydraulic models are needed for better risk assessment and mitigation.

Link: Insurance Journal – Central Texas Floods Damage Estimate