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Worried about sea damage or coastal erosion? Pick your home insurer carefully

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When it comes to storm surges, tsunamis, and erosion, there are some big differences between insurers.

As shocking images of coastal erosion hit the headlines last month, many Aussies have been looking to their home insurance to see just how much protection they really have.

Unfortunately, some people will almost certainly get an unpleasant surprise as cover for sea damage and erosion is excluded by many home insurers.

While it is possible to get some protection, insurance terminology can make it tricky to understand exactly what you're really covered for and in which scenarios.

Actions of the sea

'Actions of the sea' is a common phrase used by insurers but it can also cause some confusion. Generally, actions of the sea are excluded - but there are some important exceptions to the rule.

  • Earthquakes and tsunamis - Tsunamis may seem like an action of the sea but since they're caused by earthquakes, some insurers will cover them.
  • Storm surges - Also known as a high tide or coastal flood. Some insurers won't cover them at all but Westpac and St George are among those that do.

Coastal erosion

Erosion is front of mind for many people after homes in Wamberal were pictured dangerously close to the surf and some Sussex Inlet residents were evacuated.

Unfortunately, gradual erosion is typically excluded by home insurers in Australia, which would rule out most instances of coastal erosion.

However, there are some instances where you might be covered. For example, if the erosion was solely caused by a storm or tsunami, you might be able to claim for damages.

InsurerErosionStorm surgeActions of the seaTsunamiFind out more
ANZ logoOnly if it is the result of a tsunamiMore infoSee product disclosure statement
Budget Direct LogoIf it caused by a storm, earthquake, or tsunami - within 72 hours of the eventGet quoteSee product disclosure statement
Coles InsuranceOnly if it is caused by an earthquakeMore infoSee product disclosure statement
Real insurance logoOnly if it is caused by an earthquake, storm, rainwater or flood, within 72 hours of the eventMore infoSee product disclosure statement
St. George logoOnly if it is caused by an earthquakeMore infoSee product disclosure statement
Virginmoney logoOnly if it is caused by a storm, earthquake, or tsunami - within 72 hours of the event.More infoSee product disclosure statement
Westpac home insuranceOnly if it was caused by an earthquake.More infoSee product disclosure statement
Youi logoOnly if it was caused by an earthquake.Get quoteSee product disclosure statement

What if you're unsure?

Check your PDS immediately if you're unsure what you're covered for. If the terminology isn't clear, contact the insurance company for more information.

When it comes to storm surges, tsunamis, and erosion, there are some big differences between insurers, so it's important to know what you're getting. Otherwise, you could be paying for a policy which is less valuable than you think it is.

Is it time to switch home insurers?

Checking home insurance quotes on a regular basis is the best way to make sure you're getting a good deal. Compare Finder partners using the table below,

Name Product Building Cover Contents Cover Fire, Storm & Theft Damage Sum Insured Safeguard Online Discount Cheapest way to pay
BonusFinder Award Finalist
Budget Direct Home & Contents Insurance
Optional
Annually
Our verdict: The most popular insurer on Finder, Budget Direct prioritises low-cost cover and gives you up to 30% off your first year for new combined policies purchased online. This is a big reason it won this year’s Finder Award for value.
Best Rated Brand
Youi Building and Contents Insurance
Annually
Our verdict: Finder’s 2022 Insurer of the Year for Customer Satisfaction and our Top Pick for Fire Damage cover. It’s good if you want a tailored quote over the phone.
Green CompanyBonus
QBE Home & Contents Insurance
Annually
Our verdict: Finder's Top Pick for Floods plus cover for other common claims such as fire and theft). Its discount is better than most – 20% off your first year with a combined policy.
Finder AwardBonus
Honey Home & Contents Insurance
Monthly or Annually
Our verdict: Honey gives you $250 smart sensors to reduce accidents and estimates your rebuild costs for you. Honey was a finalist for the comprehensive category in this year’s Finder Awards.
Finder AwardBonus
Australia Post Home & Contents Insurance
Annually
Our verdict: Covers common claims such as fire, storms, floods and rain. It’s also very helpful if you need to rebuild following a disaster. It offers a special safeguard of up to 30%.
Bonus
Kogan Home & Contents Insurance
Annually
Our verdict: Good comprehensive cover (issued by QBE). Also, get 16% off on your first year's premium when you purchase a new combined Home & Contents insurance policy online + $10 monthly credit. T&Cs apply.
BonusFinder Award Finalist
Qantas Home and Contents Insurance
Optional
Annually
Our verdict: Earn up to 30,000 Qantas Points with every Qantas Home Insurance policy you take out by 28 May. T&Cs and exclusions apply.
Westpac Home and Contents Insurance
Monthly or Annually
Our verdict: Provided by Allianz, one of the biggest insurers in Australia. Cover for fire, theft, storm, cyclones and more.
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