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Does my Home Insurance cover me for flood damage?


Everything you need to know about flood cover

When flood season is on its way and it’s stormy outside, if you’ve never read through your home insurance policy before, now would be a good time to check if you’re protected from flood damage. Luckily, AAMI Home and Contents Insurance may have you covered*.

However, the degree to which flood damage is covered can be confusing. You might be asking, can I opt out? What if I live in a high-risk flood area? How much do I pay for my premium? What’s even the benefit of flood cover? Let us untangle the flood cover confusion for you!

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 small 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?

Put simply, if you have no or low flood risk, you can't remove flood cover as it’s a standard feature of the product.

However, if you're one of the small proportion of people facing a significantly higher premium because of the higher risk of flood at your insured address, you have the choice to opt out. If you’re considering opting out, consider 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.

What am I covered for?

Now to the nitty gritty.

Flood from water sources

Rest assured AAMI uses the standard legal definition of “flood” across the board for home building and contents 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 flood-prone areas this is important. With AAMI Home and Contents Insurance, you’ll be covered for loss or damage to your contents caused by flood from one of these water sources in an insured event^.

What about storms and lightning?

While these things aren’t, by definition, considered to be a “flood”, they may still affect your home in the event of one. Despite this, 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).

Compare home insurance policies

If you’re considering shopping around for home insurance without flood cover or 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.

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 PDS

^ 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 issued by AAI Limited ABN 48 005 297 807 trading as AAMI. Read the Product Disclosure Statement before buying this insurance. Go to for a copy. 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.