Nov 3, 2024
Two sets of Houston homeowners have been left high and dry after a municipal water tank exploded behind their homes, unleashing thousands of gallons of water that tore down an eight-foot fence and sent debris crashing into their homes. Now, two months later, they’re still battling for answers — and compensation — while authorities and insurers dodge responsibility.
Jane Steiner, who owns one of the affected homes with her husband, Kevin, expressed her frustration to KPRC 2: "They don't care. And it’s shameful."
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Micheal Jennings, the owner of the other damaged home, said his insurance policy won't cover the damage, labeling it as flooding — a common exclusion in standard homeowners insurance.
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"Our insurance company let us know … they had nothing to do with it. It's on ... the water district." Jennings told reporters.
The homeowners then received a letter from a lawyer representing the Reid Road County Municipal Utility District (MUD) District 1, denying responsibility and citing government immunity, which protects them from being liable for the damage.
Two months after the accident, the Jennings and the Steiners are no closer to a resolution.
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.
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Danielle is a personal finance writer whose work has appeared in publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love. She’s especially passionate about helping families and kids learn smart money habits early.
