Flood & Water Damage Insurance for Homeowners: What You Should Know

• Adroit Insurance and Risk
• - July 8, 2025

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Repairing a water damaged home can cost tens of thousands of dollars to repair and remove any mould. It’s time to check your insurance cover so you’re not left out of pocket for the repairs.

Generally, water damage from storms and rain is covered by insurers, while and damage caused by leaking or burst pipes and faulty waterproofing in showers and bathrooms is not insured, being maintenance issues.

Cover for flood damage is usually optional and an extra cost.

What Is Considered a “Flood”?

Most insurers define a flood as water escaping or being released from a lake, river, creek, reservoir, or other natural water source. This is different from stormwater runoff or rainwater damage, so it’s important to understand what your policy does (and doesn’t) cover.

Do you need Flood cover?

Some policies include flood automatically, while others offer it as an optional extra or exclude it entirely. If you live in a high rainfall area especially, your premium may be higher, but the risk of going without cover can be far greater. Flood mapping is available, like the Brisbane City Council’s Flood Awareness Map. The ABC recently published an article on the impact for insurance article on the impact for insurance.

Other types of Water damage

Storm water collecting in a pool and flowing through your home or overflow into the roof from gutters is another type of water damage. Most insurers cover storm and rainwater damage, however not if it’s connected to flood water.

Overflowing water from a sink or bath can be insured, if you’ve purchased optional accidental damage cover, at an additional cost.

Water damage not usually covered

It’s also worth noting that most insurers don’t pay for damage caused by ongoing water leaks from showers, faulty pipework or even overflowing sinks. Most of these issues are maintenance related which are not covered by insurance policies.

Why It Matters

Repairing water damage can cost thousands to repair the home and remove any mould, leaving homeowners out of pocket if there’s no insurance for the damage.

There are lots of insurers offering different levels and types of cover. So, it’s important to understand what your policy does (and doesn’t) cover.

Top Tips:

1. Check to see if your home is located in a high risk area;
2. Check your home for any signs of water damage and make sure that a leak doesn’t turn into a mould and costly repair problem.
3. Look at your insurance and see if and how Flood and Water damage is covered. Some insurers automatically cover flood, other charge an additional premium.
4. Talk to your insurance adviser who can provide flood mapping information and options for cover.

Check your insurance now, don’t wait until your need to make a claim —speak with an insurance adviser to ensure you have the right insurance cover for your needs.