La Niña causes flood concerns: Home insurance flood and storm cover analysis

• Bureau of Meteorology has warned December to February rainfall will be above median for the eastern states of Australia, with a La Niña system likely to form before the end of the year 
• Over two thirds (68%) of home insurance premiums don’t include storm surge cover 
• A third (33%) of home insurance policies do not include flood cover in the base policy, offering it as an optional extra

As the nation steps into what could be another wet summer, new research from Mozo has found that one in five (21%) Aussies are living in an area at risk of flood or rising sea level damage. 

“When preparing for a stormy summer, reviewing your home insurance policy and making sure you have the right level of cover can be the difference between sink or swim,” says Tom Godfrey, Mozo Spokesperson. 

While parts of NSW and Queensland have already experienced above average rainfall this Spring, the Bureau of Meteorology has warned December to February rainfall will be above the median for the eastern states of Australia, with a La Niña system likely to persist all through summer. 

“If you live near a body of water, it’s a good idea to understand the difference between flood and storm surge cover before the damage is done.”

“Depending on what your insurance policy covers, you can generally claim damage caused by a river, dam or sea water overflowing on flood cover, whereas storm surge cover allows you to make claims on rising seas levels resulting from a weather event,” Godfrey says. 

Analysis by Mozo found that over two thirds (68%) of home insurance premiums don’t include storm surge cover. It also found a third (33%) don’t automatically include flood cover, offering it as an optional extra. 

“Even if you don’t live near a body of water, it’s important to take the time to reassess your home's risks now. Once a storm or flood becomes a known event, there is often an exclusion period where you can’t adjust your policy, leaving you at risk of fronting up any damage costs if you aren’t already covered.” 

Tips 

• Read the fine print, it may take you an hour or so but it’s time well spent, as it will educate you on the all the events you are covered for
• As soon as your home has been damaged, take photos of the affected area, this will help process your claim
• When seeking approval to make repairs make sure you have a copy of this approval in writing from your insurer 
• Prepare for a disaster - have an evacuation plan and kit ready to go with essentials 

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Notes:  Mozo commissioned a nationally representative survey of 1,670 Australians conducted by Researcify between 10 September  2021 - 18 September 2021. Weather predictions from Australian Bureau of Meteorology Climate Driver Update 23 November 2021.