AUSTIN (KXAN) -- The City of Austin is encouraging homeowners, renters, and small business owners to explore flood insurance options as most policies are now eligible for a 25% discount. According to the Watershed Protection Department, residents should consult their insurance agents for quotes, as flooding can occur beyond designated floodplains and high-risk areas. With Austin's participation in the National Flood Insurance Program, federally-backed flood insurance is accessible to all, and the average annual policy in the city costs around $670, with lower-risk options available. A separate flood insurance policy is essential for coverage against flood-related damages, the department claims. It’s crucial for individuals and businesses to discuss with their agents what type of coverage suits their needs—be it for structures, contents, or inventory. Without this insurance, property owners are left to cover flood damage costs themselves. While federal disaster recovery resources may be available during significant emergencies, eligibility depends on meeting specific cost recovery thresholds, says the Watershed Department. More information on these resources can be found through FEMA and the State of Texas. “I’ve talked to so many people over the years who have experienced flooding, and their stories are just devastating to hear,” stated Jorge Morales, director of the Watershed Protection Department. “If you’ve got room in your budget, I highly encourage everyone to at least think about flood insurance. Call your agent and get a quote. It may cost less than expected, especially if you’re outside the mapped floodplain. Storms are only getting worse, and we do sometimes see them overwhelm our drainage systems.” Flooding can be financially devastating, with the average insurance claim in Austin reaching $21,000 as of 2021. The impact of natural disasters on small businesses is also significant; FEMA reports that 25% of businesses do not reopen after such events, according to the Department. Additionally, adequate insurance can be a critical lifeline during recovery. Most flood insurance policies are provided through the National Flood Insurance Program, with FEMA recently increasing the discount for Austin policies from 20% to 25%. This improvement is attributed to the city’s enhanced score in FEMA’s Community Rating System, which evaluates various flood mitigation efforts. Key factors contributing to Austin’s score include:    •    The preservation of extensive floodplain areas as greenspace.    •    Comprehensive water quality regulations and initiatives.    •    Strict stormwater management protocols.    •    Property buyouts at risk of flooding.    •    Elevated regulatory standards for floodplain development. It is important to note that some residents may still experience rising flood insurance premiums despite the city’s improved score says the Watershed Department. The Watershed Department states that individuals with subsidized policies will not qualify for the discount due to FEMA's Risk Rating 2.0 initiative, which is incrementally phasing out subsidies, resulting in annual increases of 18% until they reach unsubsidized rates. For more information about flood insurance and the city's flood mitigation efforts, visit AustinTexas.gov/Watershed