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Does my Home Insurance cover me for flood damage?


Several AAMI Home Insurance policies, including Home and Contents Insurance, cover flood damage.* However, there are a few ins and outs to be aware of.

What am I covered for?

Flood from water sources

AAMI uses the standard legal definition of “flood” across the board for Home Building, Contents Insurance, Landlord Insurance, residential strata and certain small business insurance policies. Introduced by the Australian Federal Government, “flood” is defined as:

the covering of normally dry land by water that has escaped or been released from the normal confines of any of the following:

  1. a lake (whether or not it has been altered or modified);
  2. a river (whether or not it has been altered or modified);
  3. a creek (whether or not it has been altered or modified);
  4. another natural watercourse (whether or not it has been altered or modified);
  5. a reservoir;
  6. a canal;
  7. a dam.

For those of you who live around these water sources, or in flood-prone areas, this is important. With AAMI Home and Contents Insurance, you’ll be covered for loss or damage to your building or contents caused by flood from one of these water sources in an insured event.^

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).

Read our Home Contents PDS

How is my flood cover premium calculated?

Only a small amount of Australian addresses are at risk of flood. If you do fall into this segment, you’ll be charged a premium for your home insurance, calculated based on your flood 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 include flood cover as a standard feature.

However, if the risk of flood at your insured address is high, you can choose to opt out. 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 without flood cover, or with it as an optional extra? You don’t want to be caught wet-handed when disaster strikes. Putting you, your family, your home and your future at risk without flood cover isn’t worth the heartache.

Explore our Home Insurance Policies

Read more:

*Flood cover is automatically included unless you have removed flood cover from your eligible AAMI Home and/or Contents policy. 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 (AAI) trading as AAMI. Read the Product Disclosure Statement before buying this insurance.

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.