Economic losses from Texas floods could hit $22 billion, says AccuWeather

By Chris Munro

July 7 - (The Insurer) - The deadly floods that have wreaked devastation across parts of Texas will result in total damage and economic losses of $18 billion to $22 billion, according to an initial estimate from commercial weather forecaster AccuWeather.

That $18 billion to $22 billion range includes costs from insurance claims along with the search and recovery efforts, what will be an extensive cleanup operation and the impact on future tourism in the region.

As AccuWeather noted, while water damage is costly to repair, it is not usually covered by homeowner’s insurance policies.

Consequently, many homeowners are often underinsured for flood damage.

At least 80 people have been killed by the catastrophic flooding that struck over the July 4 weekend.

The death toll, which includes at least 27 campers and counselors from Christian girls' summer camp Camp Mystic, is expected to rise further as search teams wade through riverbanks and make flyovers.

Six counties have suffered deaths from the flooding with the worst hit being Kerr County, home of Camp Mystic.

While AccuWeather has provided an early overall loss estimate, it remains far from clear the extent to which the (re)insurance industry will be impacted.

As AccuWeather noted, just 4 percent of homeowners in the U.S. have flood insurance through the Federal Emergency Management Agency’s National Flood Insurance Program.

However, there tends to be higher NFIP uptake along waterways such as rivers where some of the devastating flooding occurred in this event.

Research by The Insurer shows that across the six counties worst affected by the floods - Kerr County, Travis County, Burnet County, Kendall County, Williamson County and Tom Green County – the NFIP has over $3.80 billion of exposure, as of May 31, 2025.

Kerr County has suffered the highest number of deaths, with at least 75 people having lost their lives within its boundary.

Data from the NFIP shows that Kerr County had $133.4 million of exposure come the end of May 2025.

Travis County, in which at least six people have died, has $2.41 billion of NFIP exposure, as of May 31, 2025, with $1.73 billion of that within the City of Austin.

AccuWeather chief meteorologist Jonathan Porter warned the impact that the flooding could have on the Lone Star State’s insurance market.

“This latest weather disaster in the United States could further complicate the insurance availability and affordability challenges that many Texas families and businesses are struggling with,” Porter said.