Does my home insurance cover me for flood damage?


Floods are estimated to be the most costly natural disaster in Australia1. So it’s good to know that several AAMI Home Insurance policies provide cover for flood damage*^, including Home and Contents, Building Only and Contents Only Insurance.

What am I covered for?

Flood from water sources

The Australian Federal Government in 20111 defined 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.

AAMI Home and Contents Insurance provides cover for loss or damage to your building and contents caused by flood from these water sources in an insured event up to the sum insured^. This can include the following:

  • Rebuilding or repairing your home.
  • Repairing or replacing your contents.
  • Temporary accommodation. 
  • Cover for spoiled food and medication

Limits and exclusions apply, so read the Product Disclosure Statement for more info.

Storms and lightning

These things aren’t, by definition, considered to be a “flood”, but they may still affect your home. Your AAMI Home and Contents Insurance may cover your for loss or damage to your contents during these insured events. This includes power surges caused by flooding, and any damage to your home caused by storm. Conditions apply, so be sure to read your Product Disclosure Statement (PDS).

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How is my flood cover premium calculated?

Only a small amount of Australian addresses are at high risk of flood. If we do consider your flood risk to be higher, you’ll be charged a higher premium for your home insurance, calculated based on your risk level.

Here at AAMI, we research all areas of Australia to map flood-prone areas and assign risk estimates. We put our sophisticated pricing engine to work to price premiums based on your individual address.

Some things that could be taken into account when calculating your premium include:

  • likelihood of flooding,
  • expected depth of flooding relative to the insured building, and
  • expected cost of recovery.

Can I opt out or get home insurance without flood cover?

If you have no or low flood risk, your premium is unlikely to be affected so your AAMI policy will automatically include cover for flood*^.

However, if the risk of flood at your insured address is high, you can choose to opt out of flood cover – you can call us to see if you’re eligible. If you’re considering this option, be sure to think about the risk flood can pose to you and your family. Some flood-prone areas often don’t have rivers and drainage systems that have capacity to cope with downpours.

Compare home insurance policies

Shopping around for home insurance can be easy with flood cover automatically included with AAMI Home and Contents Insurance*^. Putting you, your family, your home and your future at risk without flood cover may not be worth the heartache.

Explore our Home Insurance policies

Reasons customers choose AAMI

Trusted since 1969, we pride ourself on ensuring our customers are satisfied. Our customers need a quick response after wild weather, so we do that. Our customers want to trust the repairs authorised by us, so we offer a lifetime building repair guarantee. Learn more about what our customers think about us!

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*Flood cover is automatically included unless you have removed flood cover from your eligible AAMI Home and/or Contents policy. We don’t insure you for flood for the first 72 hours of your policy. Very limited exceptions apply. For more information refer to the relevant Product Disclosure Statement

^Actions or movements of the sea and storm surge are not covered (unless the storm surge damage occurs at the same time as damage caused by storm). Other exclusions apply.

Insurance is issued by AAI Limited ABN 48 005 297 807 AFSL 230859 trading as AAMI. Any advice has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it. Please read the relevant Product Disclosure Statement before you make any decision regarding this product. The Target Market Determination is also available.

This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it.