# Rebuilding After the July 2025 Texas Hill Country Floods: Permits, Insurance and Bonds URL: https://mycontractorsinsurancequote.com/projects/wildfire-and-disaster-rebuilds/texas-hill-country-flood-rebuild Updated: 2026-10-29 · Reviewed by the Principal, Gleason Insurance Brokers, LLC Publisher: My Contractors Insurance Quote, a website of Gleason Insurance Brokers, LLC The July 2025 floods led to a state disaster declaration that grew to 30 counties and a federal major disaster declaration, DR-4879-TX, with Kerr County at the center of the rebuild. In Kerr County, a floodplain permit is required for structures in mapped flood zones even for repairs or demolition, and substantial damage evaluations shape what can be rebuilt and how high. Coverage and bonds are subject to underwriting and the forms issued, and builders risk commonly excludes flood unless it is endorsed. ## Key Decision Points - The Governor declared a state disaster on July 4, 2025, later expanded to 30 counties, and FEMA declared DR-4879-TX on July 6, 2025. - Kerr County requires a floodplain permit for structures touching Zone A, AE or the floodway, even for repairs or demolition. - Substantial damage evaluations began in August 2025 for damaged structures in the 100-year floodplain in unincorporated Kerr County. - Kerrville and Ingram run their own floodplain permits, and Kerrville's application asks for lowest-floor elevation on substantially improved structures. - Builders risk often excludes flood unless endorsed, so flood terms are confirmed before rebuilding near the river. ## Disaster Declarations and Recovery Funding The Governor issued a state disaster declaration on July 4, 2025, for Hill Country counties including Kerr, Kendall and Kimble, and expanded it to 30 counties later that month. FEMA declared a major disaster, DR-4879-TX, on July 6, 2025, with Public Assistance funding for emergency work and for permanent work on roads, bridges and utilities. Public repair contracts funded through that process typically carry agency insurance and bond requirements. The coverage map for any rebuild is in our guide to [wildfire and disaster rebuild insurance](https://mycontractorsinsurancequote.com/projects/wildfire-and-disaster-rebuilds). ## Kerr County Floodplain Permits Kerr County's flood damage permitting guide states that a floodplain permit is required if any part of a structure touches Zone A, AE or the floodway, even for repairs or demolition, and that properties in Kerrville and Ingram go through those cities' own floodplain administrators. The county engineer administers its Flood Damage Prevention Orders. Contractors confirm the permit before any repair, demolition or rebuild work begins. Statewide rules for Texas projects are explained under [Texas construction insurance rules](https://mycontractorsinsurancequote.com/texas). ### Illustrative scenario: A Kerrville Contractor Rebuilds a Riverside Duplex A Kerrville general contractor contracts to rebuild a flood-damaged duplex near the Guadalupe River. The owner receives a substantial damage determination, so the redesign raises the lowest floor to meet the floodplain standard and the project needs the city's floodplain development permit. The contractor's builders risk excludes flood, so the review adds a flood endorsement with a sublimit and deductible the lender accepts, and the contractor checks its pollution coverage for demolition debris near the river. The details are hypothetical, and a real project would depend on the agency, the carriers and the firm's own risk. ## Substantial Damage and Elevation Kerr County began substantial damage evaluations in August 2025 for damaged structures in the 100-year floodplain in unincorporated areas, with initial determinations mailed by the county Engineering Department. A substantial damage determination can require a rebuilt structure to meet current floodplain standards, including elevation, which changes the design, the cost and the values builders risk needs to carry. Kerrville's floodplain development application asks for lowest-floor elevation on new and substantially improved structures. For the wider region, see [San Antonio region construction insurance](https://mycontractorsinsurancequote.com/texas/metros/san-antonio). ## The State Floodplain Framework and New Warning Systems Texas Water Code chapter 16 directs cities and counties to adopt floodplain orders or ordinances so they can take part in the National Flood Insurance Program, and the Texas Water Development Board coordinates local efforts. After the floods, Senate Bill 3 directed the Board to identify flash-flood-prone areas in the declared counties that may need outdoor warning sirens, and Senate Bill 5 funded grants for sirens and flood gauges, creating civil and electrical work for contractors in the region. Public civil work in Texas is explained under [Texas civil and infrastructure contractor insurance](https://mycontractorsinsurancequote.com/texas/audiences/civil-infrastructure-contractors). ## Builders Risk, Flood and Liability for River Rebuilds Builders risk commonly excludes flood or limits it unless the policy is endorsed, so a rebuild near the Guadalupe River typically needs the flood terms confirmed in writing. Work in and near the river can also raise pollution and runoff questions and damage to neighboring property during demolition and grading. Public repair contracts usually call for performance and payment bonds. Property terms for rebuilds are explained in [builders risk and flood coverage for rebuilds](https://mycontractorsinsurancequote.com/builders-risk-insurance/wildfire-zone-rebuilds). ## Before You Ask for a Quote ### What to Gather - Flood zone and floodplain permit status for each site - Any substantial damage determination and elevation requirements - Lender and owner insurance requirements - Your builders risk form and any flood endorsement - Public contract insurance exhibits and bond forms for repair work ### What to Ask the Insurer or Surety - Is a floodplain permit needed for this repair or rebuild? - Does the builders risk policy cover flood, and with what sublimit? - How does elevation change the values to insure? - Which bonds will the agency require for repair contracts? ## Broker Notes **Quick Answer:** Rebuilding after the July 2025 Hill Country floods typically starts with a floodplain permit and, where required, a substantial damage determination that can call for elevation. Contractors then confirm builders risk flood terms, liability and any bonds for public repair contracts. **Common Mistake:** Starting repairs before the floodplain permit, or assuming builders risk includes flood. Kerr County requires permits even for repairs, and many builders risk forms exclude flood unless endorsed. **Broker Perspective:** We check the permit and any substantial damage determination first, because elevation changes the design, the values and the flood terms a lender will accept. **Coverage Impact:** Flood is commonly excluded or sublimited in builders risk unless endorsed; the forms and endorsements issued decide what responds. ## Questions Buyers Ask ### Do I need a permit to repair a flood-damaged building in Kerr County? If any part of the structure touches Zone A, AE or the floodway, Kerr County's guide says a floodplain permit is required, even for repairs or demolition. Kerrville and Ingram issue their own permits. ### What is a substantial damage evaluation? It determines whether a damaged structure in the floodplain must meet current floodplain standards when rebuilt, which can require elevation. Kerr County began these evaluations in August 2025. ### Does builders risk cover flood on a river rebuild? Often not unless the policy is endorsed. Flood is commonly excluded or sublimited, so the terms are confirmed before work starts. ### Are there new public contracts tied to the floods? Senate Bills 3 and 5 directed and funded flood warning sirens and gauges in the declared counties, and FEMA Public Assistance funds repairs to roads, bridges and utilities, which typically come with agency insurance and bond requirements. ## Official Sources 1. [Governor provides update on Texas response to Hill Country flooding](https://gov.texas.gov/news/post/governor-abbott-provides-update-on-texas-response-to-hill-country-flooding), Office of the Texas Governor. State disaster declaration of July 4, 2025, for Hill Country counties, later expanded. Verified 2026-10-25. 2. [Texas Severe Storms, Straight-line Winds, and Flooding (DR-4879-TX)](https://www.fema.gov/disaster/4879), Federal Emergency Management Agency. Major disaster declared July 6, 2025, with Public Assistance funding for emergency and permanent work. Verified 2026-10-25. 3. [Flood damage permitting guide](https://www.kerrcountytx.gov/blog/flood-damage-permitting-guide), Kerr County. A floodplain permit is required for structures touching Zone A, AE or the floodway, even for repairs or demolition; Kerrville and Ingram use their own floodplain administrators. Verified 2026-10-25. 4. [Substantial damage evaluations](https://kerrcountytx.gov/blog/kerr-county-issues-information-on-substantial-damage-evaluations), Kerr County. Substantial damage evaluations began in August 2025 for damaged structures in the 100-year floodplain in unincorporated Kerr County. Verified 2026-10-25. 5. [Floodplain development permit application](https://kerrvilletx.gov/DocumentCenter/View/5255/Floodplain-Development-Permit-Application), City of Kerrville. The city's floodplain development permit requires lowest-floor elevation information for new and substantially improved structures. Verified 2026-10-25. 6. [Texas Water Code chapter 16, subchapter I (flood insurance)](https://tcss.legis.texas.gov/resources/WA/pdf/WA.16.pdf), Texas Legislature. Cities and counties adopt floodplain orders or ordinances to participate in the National Flood Insurance Program, and TWDB coordinates local efforts. Verified 2026-10-25. 7. [Senate Bills 3 and 5: flood warning sirens and gauges](https://www.twdb.texas.gov/about/sb3/index.asp), Texas Water Development Board. Identifies flash-flood-prone areas in the declared counties and administers grants for outdoor warning sirens and flood gauges. Verified 2026-10-25. ## Related Decisions - [wildfire and disaster rebuild insurance](https://mycontractorsinsurancequote.com/projects/wildfire-and-disaster-rebuilds) - [Texas developer insurance and bonds](https://mycontractorsinsurancequote.com/texas/audiences/developers) - [Texas public works bonds](https://mycontractorsinsurancequote.com/construction-surety-bonds/public-works-bond-requirements/texas) - [builders risk for rebuild projects](https://mycontractorsinsurancequote.com/builders-risk-insurance/wildfire-zone-rebuilds) --- Start a quote request: https://mycontractorsinsurancequote.com/get-a-quote · Call 844-978-7283 Contract and insurance reviews are a courtesy service that may be available at times, depending on our workload and on the size, timing and complexity of the project. A review is not guaranteed and is limited to insurance considerations. It is not legal advice and is not a substitute for advice from your own legal counsel, which you may need before signing a contract or obtaining coverage. Insurance and surety services are provided through Gleason Insurance Brokers, LLC. Site information is educational and does not constitute legal advice, a binder, an offer of coverage, a guarantee of eligibility or confirmation of policy terms. Insurance conditions are governed by actual issued policies; surety rights and obligations are governed by bond and indemnity documents.