Why Your Flood Insurance Didn't Save You

Every season in Galveston brings its own kind of weather story. One week it is a calm, sunny stretch along the Gulf, and the next a heavy rainstorm can turn streets into fast-moving waterways. If you live on or near the island, you already know how quickly a normal day can turn into a flooding concern. That is why understanding flood insurance matters here more than most places. Updated for November 2025. Flood insurance is different from regular homeowners insurance, and many Galveston residents do not realize that typical home policies do not cover rising water. Because Galveston, TX sits on a barrier island, the geography makes us uniquely exposed to both storm surge and sudden inland flooding from rain events. Even people outside the high-risk zones face some level of danger. Flood zones simply tell you the statistical chance of a flood, not whether you will or will not experience one. In fact, many real losses occur in areas considered low-risk. Flood insurance steps in when water rises from the outside and damages your home or belongings. It matters locally because we have seen everything from hurricanes to single-day storms cause serious damage. Policies through the National Flood Insurance Program typically include building coverage and contents coverage. Building coverage helps pay for the structure itself, including electrical systems, plumbing, and walls. Contents coverage helps with personal belongings. It is important to know that primary residences may qualify for replacement cost on the structure, but contents are almost always paid at actual cash value. Secondary homes are even more limited and receive actual cash value on the dwelling as well. Flood insurance does not cover everything. It does not include loss of use, meaning it will not pay for temporary living arrangements if your home becomes uninhabitable. It will not cover moisture or mold damage that occurs because repairs were delayed without good cause. It also does not cover landscaping, decks, fences, or items outside the home. Some people are surprised to learn that coverage limits cap out at 250,000 for residential dwellings and 100,000 for contents under the National Flood Insurance Program. This is why many Galveston homeowners with higher-value properties consider excess flood coverage through private insurers to close the gap. Your premium in Galveston depends on several factors. The flood zone your home sits in is a major driver. A-zones and V-zones have higher premiums because they carry higher risk. Homes built on stilts, homes with proper flood vents, and homes built according to current elevation standards often qualify for better pricing because they allow water to move through instead of trapping it. Older structures built before modern codes may have grandfathered conditions, but reviewing these details with your agent can help you understand if elevating or improving your home would reduce risk. Another major factor is how much coverage you select. Choosing only the minimum building limit can leave you severely underinsured, especially with construction costs rising year after year. Contents limits matter too. Replacing electronics, appliances, furniture, and clothing adds up quickly after a flood. Many families do not realize how much they actually own until they begin listing items for a claim. That is why local agents recommend doing an annual home inventory. A simple video of your rooms, cabinets, closets, and major belongings can save enormous time later. Flood events in Galveston do not only happen during hurricane season. Northern storms in winter, slow-moving rainstorms in spring, and tropical systems in summer all bring risk. Water does not need to reach your doorstep to cause a total loss. A damaged foundation, a condemned building, or a structure made inaccessible after a storm can all generate claims. Even units on upper floors of condo buildings can experience losses when the building itself is condemned due to foundation damage from floodwaters. Here is a simple checklist to help guide your next steps: Review your current flood zone and elevation. Confirm whether your home is your primary or secondary residence. Check your dwelling limit and compare it with today’s rebuilding costs. Review your contents limit and consider how much you truly own. Ask whether you need excess flood coverage. Complete an annual home inventory with photos or video. Update your agent anytime you remodel or add to your home. Revisit your policy every year to keep coverage aligned with real costs. Living in Galveston, TX means living close to the water we love, but it also means living with the risk that comes with it. The O’Donohoe Agency has helped local families and businesses through major storms, minor events, and everything in between. The goal is simple: helping neighbors stay protected. Learn more: https://odonohoeagency.com/policies/p...