Under Contract in Houston With a Storm in the Gulf? Three Questions, Answered

Every August the tropics wake up and my phone starts ringing with the same worry from people already under contract. The house is chosen, the closing date is set, and now there is a system in the forecast. Here is what the Texas contract says about the three questions I get most.

Who pays if the house is damaged before closing?

The seller does. Paragraph 14 of TREC form 20-19 requires the seller to restore the Property to its previous condition by the Closing Date, at the seller's expense, for damage that happens after the Effective Date. If they cannot manage it for reasons beyond their control — roofers are booked out for weeks after a real storm — you choose: terminate and have your earnest money refunded, extend performance up to 15 days, or accept the house damaged with an assignment of the insurance proceeds and a closing credit for the deductible. The paragraph ends by saying the seller's obligations here “are independent of any other obligations of Seller under this contract.”

Can I still walk away?

Yes, and you do not need an open option period to do it. Paragraph 5B gives you an unrestricted right to terminate by 5:00 p.m. within the days you negotiated after the Effective Date, but that window has usually closed by the time a storm forms, and Paragraph 14's termination right is separate. Sellers sometimes argue that an As Is offer means you took the house however it sits, storm included; Paragraph 7D defines As Is as “the present condition of the Property with any and all defects,” and Paragraph 14 operates independently of it.

When does my insurance have to be bound?

Sooner than most buyers expect, because insurance stalls more Houston closings than storm damage does. If your address is in Kemah, Shoreacres, Seabrook or La Porte, you are inside the Texas Windstorm Insurance Association's area, and TWIA stops issuing new policies once a storm is designated a hurricane within its watch boundary. Cypress, Katy and Copperfield sit outside it, so the question there is whether your own carrier has quietly stopped binding — ask your insurance agent today. Flood runs on a separate clock: an NFIP policy takes 30 days to take effect unless it is bought in connection with a loan closing, so cash buyers and anyone adding coverage voluntarily should start during the option period.

If you are under contract right now and not certain whether your insurance is bound or merely quoted, call or text me at (281) 500-7077 and we will check it together. I am a real estate broker, not an attorney and not an insurance agent, so anything specific to your address and policy belongs with your title company, a Texas real estate attorney, and a licensed insurance agent.

Go deeper on my site

• Hurricane Hits Before Closing — Now What? — Paragraph 14 quoted in full, plus how to pick among your three choices and what a percentage wind-and-hail deductible really costs.
• Houston's Flood Disclosure Questions, Mapped — What floodway, flood pool, Zone AE and the FEMA/SBA line on the Texas Seller's Disclosure each tell you before you write the offer.
• What Houston Home Buyers Should Know About the 2026 Texas Contract Changes — The four changes in TREC form 20-19 that land on the buyer's side, including the Legal Holiday list that can move your deadlines.