Flood coverage is an important consideration for homeowners and buyers who are looking into home insurance policies in the wake of recent flooding in southeast Queensland and northern New South Wales.

Review your home insurance policy regularly to determine if you have any changes.

This article:

What flood insurance covers

Flood insurance protects your home and contents from flooding damage.

According to the Insurance Council of Australia (93% of contents and home-building insurance policies) offer flood coverage.

This insurance covers the structure and interior of the property. In the event of a flood, it may cover temporary accommodation costs.

Typically, flood cover does not include external damages to the property — for instance, any damage a flood caused on your driveway, fences, landscapes, might not be eligible for coverage unless you negotiate these to be part of the deal with your insurer.

Flood insurance may not be able to cover storms or heavy rains that occur before a flood. These areas are typically covered by the standard home policy.

It is also crucial to note that some insurers do not include damages caused by floods resulting from storm surges, leaks from underground water, and other “escape of liquid” and water-related events.

To ensure your policy is applicable to all situations, make sure you read the product disclosure statement. Please contact your insurance company if you have any questions.

Most flood-prone cities

According to Insurance Australia Group’s (IAG) Flooding in Australia 2020 Fact Sheet, over one million properties — or about one in 10 homes — have some level of flood risk in Australia.

Some of the most at-risk areas in Australia include Queensland’s Brisbane and Townsville, and New South Wales’ Central Coast and Clarence Valley.

Flood Damage Repair Costs

The severity of flooding can affect the cost of flood damage. IAG estimates that it will cost around $80,000 to restore homes damaged by flooding.

IAG Data from 2019 Townsville floods showed that flood-related claims for homes exceeded $100,000. This figure was as high at $800,000.

NRMA Insurance used the flood depth to estimate the damage.

Flood depth

Possible property damage costs


$20,000 – $60,000


Prices from $50,000 to $130,000


From $100,000 to $220,000


$200,000 – $360,000

According to the Insurance Council of Australia Flood insurance premiums can be proportional to the property’s flood risk. Flood-prone homeowners will pay higher premiums than homeowners with lower risk.