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.— Tim Bennett, insurance expert
Yes, insurance can cover flood damage. Here's what that usually means:
For example, if a lake, creek, dam or river bursts its banks and it damages your home or contents, insurance can cover you.
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.
| Response | Gen Z | Gen Y | Gen X | Baby Boomers |
|---|---|---|---|---|
| Flood protection | 10.11% | 10.05% | 9.87% | 6.82% |
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.
| Provider | Floods | Cover for rainwater damage/water run-off |
|---|---|---|
| Budget Direct Home and contents insurance | Optional add-on | Included automatically in storm and rainwater damage (damage must occur within 24 hours of a storm or heavy rain) |
| Youi Building and contents insurance |
| 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. |
| Coles Home and contents insurance |
| Water run-off automatically included in flood cover |
| ANZ Home and contents insurance |
| Included automatically in storm, rainwater, flood or wind damage |
| Everyday Comprehensive building and contents |
| Included automatically in storm, rainwater, flood damage |
| Honey Home and contents insurance |
| Water run-off automatically included in flood cover |
| Bendigo Bank Home and contents insurance |
| Included automatically in storm, flood rainwater or wind damage |
| Seniors Top home and contents insurance |
| Included automatically in storm, rainwater, flood damage |
Flood cover can pay to repair or rebuild your home and your belongings if you have contents insurance. For example, it can cover:
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).
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.
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