Flood Insurance and Prevention for Homes and Businesses in Australia

Floods, whether caused by a natural disaster or a man-made mistake of construction, can bring damaging consequences to homes and businesses. This makes flood prevention one of the major concerns oftentimes tackled by the Australian government and insurers alike.


flood prevention


According to Australian insurers, they define flood as “the covering of a normally dry land by water that has overflowed or been released from the normal confines of any lake, river, creek, and other natural watercourses, whether altered or not; and any reservoir, canal, or dam.” So, when applying for flood insurance, which is now an essential protection solutions for assets, always check the details disclosed in the product disclosure statement of your policy to know if it’s worth every penny spent.

Different Types of Flood

There are different types of floods, and it is important that you have the basic knowledge about them to understand what your insurance policy covers and what Australian flood prevention method applies best to protect your property. Generally speaking, there are three main types of flood.

  • Flash Flood (Stormwater Runoff)

This type of flood is caused by heavy rainfall, creating an overflow in sewers and catchments under the urban floor. Another cause of flash floods is the water flowing from the mountains and hillsides surrounding most suburban communities. Flood prevention in these areas must include reforestation.

  • Riverine Flood (Fluvial)

This type of flood happens when the excessive precipitation over a long period of time makes the streams and rivers surpass its normal level capacity. It can also be caused by an overwhelming snowmelt and ice jams in rivers and other water courses.

  • Surges (Coastal Cause)

From the word itself, this type of flood is the one caused by storm surges associated with a tsunami or a tropical cyclone. Most insurance companies don’t cover you for this flood, which makes major flood prevention measures necessary.

Insurers’ Determining Factors to Cover Flood Damages

The general insurance industry, in partnership with the state government, has developed and licensed the National Flood Information Database (NFID) to be used by insurers in determining different flood risks to properties.

The NFID is not considered a public database, but a useful source for insurers to determine the properties at risk of flood. They also make use of the government flood map, flood history of the city, terrain data, and previous insurance claims information. Through this system, they can calculate the specific premiums for policyholders from certain areas.

Most insurance companies won’t cover some flood damages or will only cover a small amount. This makes the government’s crucial role in providing significant actions for flood prevention in Australia.

Flood Prevention Measures

The fact that most insurance companies have limited coverage for properties at risk of flooding makes Australia one of the leading makers of flood prevention and mitigation barriers, dams, and catchments. You can select the best barriers fit for your infrastructure, from the removable barrier and glass walls to flip-up barriers.

Creating a dam to catch excess water flow is also one of the major flood prevention methods done not only in Australia but around the world. If you want to find Australian flood prevention providers, visit Awma Water Control Solutions to get the best flood barriers and catchment technology for your home and business.