Most home insurance policies automatically cover floods.
With a few insurers, such as Budget Direct, you will need to specify you want to add flood cover to your policy.
You generally will not be covered for flood damage if you took out a policy 72 hours ago.
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We had an above ground pool explode next door, which caused a tonne of water damage to our downstairs carpet. It was a nightmare. Luckily we had updated our home insurance earlier that year, and it was covered. It would have been a pretty costly situation for us if we hadn't, or we would have had to sue the neighbours, it would have been the worst. Home insurance really paid for itself that day.
QBE automatically covers flood damage. It's included in the insured event storm, storm surge, rain, hail or flood. This makes claiming a little simpler. With most insurers, storms and floods are considered 2 separate insured events. This means if there is storm and flood damage to your home, you may need to pay 2 excesses but not with QBE.
It covers forced evacuation by a government authority. For example, if you need to leave because of a flood risk, QBE can pay for temporary accommodation for up to 60 days.
It can also cover debris removal which can be very costly if your home is damaged or destroyed, plus pay for the temporary storage of your undamaged belongings.
We looked at Finder partners and selected our top pick based on who offered all of the following benefits: flood cover (that is automatically included), temporary accommodation (including evacuation), debris removal and temporary storage. We didn't look at every insurer on the market.
Does home insurance cover flood damage?
Yes, insurance can cover flood damage. Here's what that usually means:
Floods (water that escapes from its natural confinements)
For example, if a lake, creek, dam or river bursts its banks and it damages your home or contents, insurance can cover you.
Rainwater run-off
For example, if a large amount of rain falls and overflows into your home, you can be covered for the damage. Some insurers include this in flood cover, while others will cover rainwater in storm cover.
Finder survey: Do Australians have home insurance for flood protection?
Response
Female
Male
Flood protection
8.97%
8.83%
Source: Finder survey by Pure Profile of 1113 Australians, December 2023
How do home insurers cover floods?
Since 2012, all Australian insurers define a flood as:
The covering of normally dry land by water that has escaped or been released from the normal confines of: any lake, or any river, creek or other natural watercourse, whether or not altered or modified; or any reservoir, canal, or dam.
Some insurers will go further than this and include rainwater run-off, sometimes called water run-off as part of flood or storm cover. We've included a section on how this is covered.
Included automatically in storm damage. Covers loss or damage due to storm water overflow from roof gutters and their downpipes or from the area immediately around the premises.
Included automatically in storm, rainwater, flood damage
What is covered in flood insurance?
Flood cover can pay to repair or rebuild your home and your belongings if you have contents insurance. For example, it can cover:
Structural work to repair a flooded foundation
Replacing your television set if damaged by flood water seeping into the electronics.
Temporary accommodation and emergency evacuation costs if your home's too damaged to stay in.
Flood insurance payouts
Insurers have paid more than $6.07 billion to insurance customers impacted by the floods that hit South-East Queensland and parts of New South Wales, according to the Insurance Council of Australia.
What isn't covered?
Most home insurance policies won't cover you for flood damage if you make a claim within 72 hours of buying the policy. Put simply, if you take out cover while a flood warning is active, your insurance claim will be rejected.
There are a few exclusions related to floods that you won't be covered for. These are some of the main ones. To find out more, it's worth looking at the exclusions section of your home insurer's product disclosure statement (PDS).
Actions of the sea – for example, tsunamis or high tides.
Water that's entered your home because of renovations.
Water that has gradually seeped into your building.
Earth movement that was not due to the flood or storm.
Damage to plants, trees and lawns.
Damage to swimming pool covers.
How do I know if I'm in a flood zone?
You can contact your local council or talk to your insurer. They should both be able to let you know if you're in a flood zone. You can also enter your details into the Australian Flood Risk Information Portal, which will give you a breakdown of risk within your local area.
Insurers will use the National Flood Information Database (NFID) to determine your home’s flood risk and premium. They will also take into account your home’s location, building type and claims history.
Why you can trust Finder's home insurance experts
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You pay the same as buying directly from the home insurer. Better still, we regularly run exclusive deals that you won't find on any other site – plus, our tables make it easy to compare policies.
Unlike other comparison sites, we're not owned by an insurer. That means our opinions are our own and we work with lots of home insurance brands, making it easier for you to find a good deal.
We're here to help
Since 2014, we've helped 150,000+ people find home insurance by explaining your cover options simply and clearly. We'll never ask for your number or email. We're here to help you make a decision.
Frequently asked questions
Let your insurer know. If you’ve already made a claim for a flood event, see if they’ll cover the mould damage as well. There are no guarantees since mould is generally excluded from cover, but if it’s a result from an insured event, you may be in luck.
There will be some exclusions – for example, gradual seepage or slow leaks – but generally, damage from rainwater will be included in your standard home insurance policy.
Some insurance companies will include flood damage as standard, but others only offer the cover as an optional extra, which you will have to pay more for.
If you're not sure whether you're covered for flood damage, check your PDS carefully or contact your insurance company directly to find out.
As a renter, you normally won't need to purchase home insurance. However, if your property is at risk of flooding, make sure your contents insurance includes flood cover and that you have a high enough sum insured to protect your belongings.
There are a few things you'll need to do before, during and after a flood. Check out these checklists to help you better prepare.
Flood cover is included in most comprehensive car insurance policies. Like home insurance, if you keep your car in an area prone to flooding, your premiums might be higher.
There is also likely to be a waiting period, which means you won't be covered for any flood damage that occurs within the first few days after purchasing your policy. However, the exact time period varies between insurers.
Gary Ross Hunter is an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, The Guardian and news.com.au. Gary holds a Kaplan Tier 2 General Advice General Insurance certification which meets the requirements of ASIC Regulatory Guide 146 (RG146).
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