Does home insurance cover flood?
Flood is one of the most important — and most misunderstood — parts of an Australian home insurance policy. Since 2012 insurers have used a standard definition of "flood" (the inundation of normally dry land by water escaping a watercourse, lake or reservoir), which made cover clearer but also let insurers price flood risk precisely by address.
Whether flood is included, optional, or excluded depends entirely on your insurer and your property’s flood risk. In low-risk areas it’s often automatically included at little extra cost; in high-risk areas it can be a large part of your premium, optional, or in some cases not offered at all.
Typically covered
- •Damage to your building and contents caused by riverine or rainwater flooding (where flood cover applies)
- •Storm and rainwater runoff in most standard policies (separate from flood)
- •Flash flooding, depending on the policy definition and your cover
Typically not covered
- •Actions of the sea — storm surge, king tides and coastal erosion are almost always excluded
- •Flood, where you have opted out or it isn’t offered for your address
- •Gradual water damage, seepage or rising damp
- •Damage to property already affected before the policy started
How it works in Australia
Insurers price flood by the specific address using national flood mapping, so two homes in the same suburb can be quoted very differently. If you’re in a flood-prone area it pays to compare — flood appetite varies enormously between insurers, and it’s often the single biggest swing factor on the premium.
General information only — cover, limits and exclusions vary by insurer. Always read the Product Disclosure Statement (PDS) before deciding.
Frequently asked
Is flood cover automatic in Australia?+
Not always. Many insurers include it automatically, some make it optional, and a few won’t offer it for very high-risk addresses. Always check the PDS for how flood is treated on your policy.
What’s the difference between flood and storm cover?+
Storm/rainwater damage is usually a standard inclusion. "Flood" specifically means water escaping a watercourse, lake or reservoir, and is treated separately — often optional or priced by flood risk.
Does home insurance cover storm surge?+
Generally no. Storm surge and other "actions of the sea" are commonly excluded from home insurance, even when flood cover is included.