‘It’s shameful’: Houston homeowners in limbo after public water tank explodes, floods their homes — but home insurers won’t cover and district claims ‘government immunity’ to avoid paying

Why are these homeowners stuck in limbo?

Homeowner insurance policies rarely cover flood damage, even when caused by natural disasters like Hurricane Helene, which recently devastated parts of North Carolina, Florida and Tennessee. Flooding remains one of the most common and costly disasters in the U.S., with costs exceeding $850 billion since 2000. Most insurance policies exclude flood coverage because of the high risks, requiring homeowners to purchase separate flood insurance from FEMA’s National Flood Insurance Program (NFIP) or private providers.

Meanwhile, government immunity, or "sovereign immunity," is a legal doctrine that protects government entities and their employees from liability for certain actions, including property damage. For instance, if a fire department breaks windows or doors while putting out a blaze, government immunity protects them from liability, as their actions are considered necessary for public safety.

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The Texas Tort Claims Act may provide recourse

Though government immunity can be justified, Texas residents have options to recover damages. The Texas Tort Claims Act (TTCA) waives government immunity in situations of negligence. Similar tort laws in other states permit governments to be held accountable for damage or injury under certain conditions.

The TTCA could allow homeowners Kevin and Jane Steiner and Micheal Jennings to sue MUD if they can prove that the utility district was negligent in maintaining the water tank or could have taken steps to prevent the flood. KPRC 2 News reporter Daji Aswad has requested the tank’s maintenance and repair records, which could reveal negligence and support the homeowners’ case.

Navigating property damage caused by a government entity can be complicated, but state tort laws like the TTCA may offer a way forward. Homeowners in similar situations should consider consulting a tort attorney to explore their legal options.