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Budget Direct Flood Cover

With Budget Direct home and contents insurance, flood insurance is not automatically included; rather, it’s an optional cover you can apply to add to your policy, if you wish.

It means that, if your home is not one of the estimated 20% of properties in Australia at risk of flooding, you’re not obliged to pay for built-in flood cover you think you don’t need.

If you do get our Flood Cover, upon acceptance of any claim we’ll pay to repair or replace your flooded home and/or contents, up to your sum insured.

What is a ‘flood’?

We define a ‘flood’ as:

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

  • a lake, river, creek or other natural watercourse (whether or not any of them have been altered or modified)
  • a reservoir, canal, or dam.

‘Flood’ is different from…

Event Loss or damage caused by... Covered by Budget Direct?
Storm and rainwater Storms and rainwater, including escape of rainwater from any water pipe, drain or gutter; and surface run-off of rainwater from surrounding areas that occurs within 24 hours of a storm or heavy rain. Yes – automatically
Escape of liquid Escape of liquid in the home, including water damage caused by burst or leaking water pipes and overflowing sinks, basins, baths and appliances. Yes – automatically

‘Flood’ does not include…

Event Loss or damage caused by... Covered by Budget Direct?
Action of the sea Any action or movement of the sea, including a rise in ocean or sea level, storm surge, high tide, king tide, tidal wave or tsunami. No
Underground water Underground water seepage or pressure. No
Hydrostatic pressure The force or pressure of liquids that are at rest (e.g. leaks resulting from water pressure on pool or retaining walls). No

How is flood risk determined?

When you apply for our Flood Cover, we’ll determine the probability and consequences of your property flooding and decide whether to accept the risk.

We rely on data from numerous sources, including the National Flood Information Database. The database, which takes into account historical flood information and the latest flood modelling, contains all the available government flood-hazard data for more than 14 million addresses in Australia.

It tells us the likelihood of different sized floods (if any) occurring at each address, including one-in-20 year, one-in-50 year, one-in-100 year, and probable maximum flood events. 

We also consider, among other things, your flood-claims history, the slope of your property, and your home’s building materials and floor height above the ground.

Is my home in a flood zone?

Floodmap of Brisbane City

According to the Insurance Council of Australia (ICA), only about 20% of addresses in Australia are at risk of flooding. Is your home one of them?

To answer that question, you may wish to contact your local council, which is likely to be the government agency most responsible for studying, mapping and managing flood risk in your area.

Council flood maps are typically based on computer models of a hypothetical 1-in-100 year flood: This refers to a maximum flood level or peak that has a one in a hundred, or 1%, chance of being equalled or exceeded in any given year. 

While the main purpose of these maps is to guide building and development in the relevant catchment, you can also use them to gauge the likelihood of your home being flooded.

How do I add Flood Cover to my policy?

You can apply to add Flood Cover to your Budget Direct home and/or contents insurance policy when you get a quote and buy insurance.

Note that during the quote process you’ll be presented with an initial price before being asked to ‘refine your cover’: This is your opportunity to add optional covers, including Flood Cover.

If you’ve already bought your insurance, you can apply for Flood Cover by calling us on 1800 182 310 or logging into your online account and editing your policy.

If you meet our underwriting criteria, we’ll approve your application.

How much will my Flood Cover cost?

Assuming we agree to offer you Flood Cover, the cost of adding it to your Budget Direct home and/or contents insurance policy will depend on, among other things, the:

  • risk of flooding at your address
  • expected depth of flooding relative to the floor height of your home
  • value of your home and, in turn, the cost of repairing or rebuilding it.

If you add Flood Cover to your policy during the online quote process, the quoted price will increase, revealing the cost of your Flood Cover.

When will my Flood Cover take effect?

Your Flood Cover will take effect instantly, as long as your home and/or contents insurance policy started:

  • immediately after another policy covering the same risk, with the same level of cover (including flood cover) ended, without a break in cover; or
  • the same day you bought your home or moved to a new address.

Otherwise, your Flood Cover will take effect 72 hours after you add it to your policy.

This is designed to stop people taking out cover immediately before anticipated floods and then claiming. This in turn helps keep your premiums down.

Why doesn’t Budget Direct cover homes north of the Tropic of Capricorn?

Northern Australia is exposed to more intense weather-related perils, most notably cyclones, than southern Australia is.

To manage claims costs and keep premiums low for our customers, our policy is to only insure homes south of the tropics.

Is my car covered for floods?

Budget Direct Comprehensive Car Insurance covers your car for loss or damage due to severe weather, including flood.

Get a home insurance quote online