FOR IMMEDIATE RELEASE
MELBOURNE, 18 June 2026. Homeowners in Australia's highest flood-risk postcodes are being quoted more than double the home insurance premium of equivalent homes in low-risk areas. On a typical home that is roughly $1,300 more a year, according to a new CoverClub analysis of almost 31,000 home insurance quotes.
The data shows a second pattern that worries us more. Flood-cover take-up actually falls as flood risk rises. So the households most exposed to flooding are the least likely to be covered.
CoverClub is calling on insurers to show customers what flood is costing them, and to give them a real choice about whether to opt out.
The findings come as new Melbourne Water flood maps, reported by The Age, flag almost 20,000 homes across Melbourne's north-west and north-east for flood risk. Flood mapping, and the premiums that follow it, now reach well into suburban Australia.
A 2.6x premium gap for flood-exposed homes
To compare like with like, we measured each quote per $100,000 of sum insured. That strips out the effect of bigger homes simply costing more.
Homes in the highest flood-risk postcodes were quoted an average of $524 per $100,000 insured. In the lowest-risk postcodes the figure was $205. That works out to a 156% loading, about two and a half times the price.
| Postcode flood risk (share of homes med/high) | Avg premium per $100k insured | Vs lowest-risk |
|---|---|---|
| Under 1% | $205 | baseline |
| 1 to 5% | $250 | +22% |
| 5 to 10% | $299 | +46% |
| 10 to 25% | $368 | +80% |
| 25%+ | $524 | +156% (2.6x) |
The same gap shows up in dollars once you hold the insured value steady. On a home insured around $500,000, the median quoted premium rises by $1,288 a year. On larger homes the extra cost stays between about $1,300 and $1,400 a year.
| Home insured for | Low flood risk | Highest flood risk | Extra per year |
|---|---|---|---|
| ~$500,000 | $873 | $2,161 | +$1,288 (+148%) |
| ~$750,000 | $1,184 | $2,593 | +$1,409 (+119%) |
| ~$1,000,000 | $1,840 | $3,137 | +$1,297 (+70%) |
Queensland and New South Wales carry the heaviest load. They have the most homes in flood-exposed postcodes, and a clear premium penalty to match. Both states have also been hit hardest by recent floods.
| State | Share of quoted homes in flood-exposed postcodes | Median premium uplift vs lower-risk |
|---|---|---|
| Queensland | 64% | +39% |
| New South Wales | 50% | +28% |
| Victoria | 15% | +36% |
| Tasmania | 23% | +32% |
| South Australia | 27% | +17% |
Cover is falling where it is needed most
Insurance only protects you if you hold the cover. In the quotes we analysed, flood-cover take-up fell from about 89% in the lowest-risk postcodes to about 82% in the highest.
It is a small gap, but it points one way. As premiums climb into the thousands, some of the most exposed households appear to be dropping flood cover to keep the bill down.
The scale is large. Across the postcodes in the analysis, an estimated 1.5 million homes sit in medium or high flood-risk areas. Around 43,000 of those are rated high risk.
“Flood is now the biggest single factor in what an Australian household pays to insure their home,” said Andre Lang, CEO of CoverClub. “Our analysis shows the gap between a low-risk and a high-risk postcode can be well over a thousand dollars a year on an average home. What worries me most is where the cover is dropping. It is falling away in exactly the high-risk areas that need it. The people most likely to flood are becoming the least likely to be covered.”
Flood-affected communities feel this most sharply. Lismore has lived through some of the worst flooding in Australian history. Speaking at the 2026 AFR Insurance Summit in Sydney, its Mayor put it plainly:
“We have members of the community who want cover without flood, at a reasonable price to cover in case of storms, fire or break-ins, but because it's all bundled together, they can't afford it.”
What CoverClub is calling for
CoverClub says the market is pricing flood risk rationally. Higher risk means a higher price, and that part is fair enough.
The problem is the all-or-nothing way flood is bundled into a policy. It leaves households with a false choice between cover they cannot afford and no cover at all. The data suggests more of them are choosing none.
CoverClub is asking insurers to do two things:
- Show the flood component. Disclose what flood adds to every premium, and tell customers their hazard rating, so they can see the real cost.
- Offer a real opt-out. Let customers who understand their risk choose to drop flood cover, instead of forcing an all-or-nothing decision on the whole policy.
“We are not telling anyone to drop flood cover. For a high-risk home that can be exactly the wrong move,” Lang said. “What we are saying is that the current model pushes families to pick between a premium they cannot afford and no insurance at all. Too often they pick nothing. Insurers should show people what flood is costing them and let them make their own call. A family that keeps its fire and theft cover is far better off than one that walks away from insurance altogether.”
CoverClub compares home insurance across a panel of insurers and arranges cover for Australian homeowners. The company says clearer flood pricing, and a genuine choice for consumers, would keep more households insured against everyday risks like fire, storm and theft, even where full flood cover is out of reach.
ENDS
About CoverClub
CoverClub is an Australian home insurance comparison and broking service. It helps homeowners compare cover across a panel of insurers and arrange the policy that suits their needs. CoverClub advocates for transparency and informed choice for consumers.
Cover Club Pty Ltd (ABN 39 686 766 665) is an Authorised Representative (AR No. 001315718) of Shanebridge Pty Ltd (ABN 16 011 049 899), AFSL 245566.
Media enquiries
Email: insurance@coverclub.com.au
Notes to editors
Findings are based on 30,961 home insurance quotes generated through CoverClub's multi-insurer comparison platform between March 2025 and June 2026. Each property is counted once, using the cheapest available market quote. The “per $100,000” figures divide the annual premium by the sum insured to control for home value. Flood-risk classification is drawn from publicly available postcode-level flood-risk ratings. A postcode is described as “flood-exposed” where at least 10% of its homes are rated medium or high risk, and “highest-risk” where at least 25% are. Figures are quoted premiums on CoverClub's panel of insurers, not policies sold, and reflect postcode-level averages. Actual premiums vary by property, insurer and individual circumstances. Totals refer to the roughly 2,271 postcodes represented in the dataset. The full data analysis is available to media on request.
General advice only. This release does not take into account your objectives, financial situation or needs. Premiums, hazard ratings and cover terms vary between insurers and individual circumstances. Consider the relevant Product Disclosure Statement before making any decision about your cover.