Austin Flood Mitigation Makes Residents Eligible for 25% Insurance Discount

June 10, 2024

Austin residents can now receive up to a 25% discount on their flood insurance thanks to the city’s upgraded Community Rating System score from the Federal Emergency Management Agency (FEMA).

Last month, FEMA notified the City of Austin that it was upgrading its score from a six to a five. The new score means a 25% discount will be available for most Austin flood insurance policies issued or renewed on or after October 1, 2024. Previously, the highest discount available to Austin residents was 20%.

According to FEMA, the new flood insurance discounts are a tangible result of Austin’s flood mitigation activities, which can include floodplain mapping, preserving open space, stormwater management and higher regulatory standards.

FEMA requires communities participating in the National Flood Insurance Program to adopt and enforce minimum floodplain regulations. The Community Rating System was introduced in 1990 to recognize and encourage communities to go above and beyond the minimum standards.

The average annual flood insurance premium in Austin is $670. Approximately 8,000 flood insurance policies are currently in effect in the city, providing coverage for $1.95 billion in potential losses. Flooding is not covered by homeowners’ or renters’ insurance.

Austin is particularly vulnerable to flooding because the city is in the middle of a flash flood alley.