- Claimhouse Claim Guides
Storm and Flood Claims
- Insured events
Introduction
Storm and flood claims can be some of the most complex and stressful insurance claims for homeowners and landlords. Understanding how insurers assess these claims – and the key differences between storm and flood – is crucial to getting a fair outcome.
Below, we answer some of the most common questions to help you navigate your insurance claim after a severe weather event.
What’s the difference between a storm and a flood?
Depending on the policy, insurers may treat storms and floods as separate insured events, with different definitions and cover limits.
- Storm usually refers to violent wind, rain, hail, or snow. Most home and contents insurance policies include cover for storm damage.
- Flood is typically defined as water escaping or being released from a natural watercourse, such as a river, creek, or lake, whether modified or not.
How do insurers decide whether the damage was caused by storm or flood?
Insurers may base their decisions on:
- Meteorological data from the Bureau of Meteorology or similar sources
- Expert reports such as hydrology or engineering assessments
- Site inspections, photos, and videos of the damage
They assess when and how the water entered the property, whether it came from the sky, ground runoff, or a body of water, and whether floodwater or stormwater arrived first.
What if both storm and flood contributed to the damage?
Insurers and AFCA assess what is known as the proximate cause of damage, the dominant or most direct cause.
If stormwater entered before floodwater, or storm runoff contributed meaningfully to the damage, the claim may still succeed even if flood cover is excluded. Each case is assessed on its own facts and timing.
What’s the deadline to lodge a storm or flood claim?
Many policies will require claimants to lodge claims as soon as reasonably possible after the event, and others may have specific timeframes. The sooner you can lodge the claim, the better. Any delays may be relied upon by the insurer to reduce or reject your claim, where they believe they could have prevented further damage had they been notified sooner.
Can I access temporary accommodation or make-safe works?
Most home insurance policies cover the cost of emergency accommodation if your home is uninhabitable due to an insured event. They also allow for urgent make-safe works to prevent further damage.
If the insurer doesn’t arrange this, you could choose to do so independently and seek reimbursement later, although you would be taking the risk that the funds you spend on accommodation are not reimbursed by the insurer (for example, if the claim is not accepted).
Just make sure to tell your insurer first, keep detailed records including invoices, before-and-after photos, and evidence that the work was necessary. Communication with the insurer is key, even if they aren’t responding.
Could I ask for a cash settlement instead of repairs?
Yes. You could request a cash settlement. Just be wary that if you ask for a cash settlement, the insurer can generally cash settle you based on the cost available to them, not you. When deciding which quote a cash settlement should be based on, AFCA generally considers which quote is “actionable”, or available for you to use.
Can I challenge the insurer’s repair scope?
Yes. Your insurer should entitle you to:
- A copy of the proposed scope of works
- A review of the scope to identify missing or underpriced repairs
- Obtain independent builder quotes or reports
- Request an amendment to the scope if new or overlooked damage is identified
Conclusion
Storm and flood claims are rarely straightforward. They involve technical definitions, competing causes of damage, and a complex claims process that can leave homeowners feeling overwhelmed or shut out.
Insurers can rely on broad exclusions and expert opinions to deny or limit claims. But a denial is not always the end of the road. You may still be entitled to claim if the storm contributed to the damage, if water entered through storm-damaged areas, or if the insurer has failed to properly assess or explain their decision. In some cases, the difference between a paid and declined claim comes down to timing, evidence, and how clearly the insurer has justified its position.
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Having issues?
We commonly see these issues during a storm or flood claim:
Delays and Make Safe Failures – Insurer inaction can cause damage to worsen, often resulting in mould growth.
Exclusions – Denials based on defects, wear and tear, maintenance or atmospheric conditions applied unfairly.
Inadequate Assessments – Insurer reports often miss key damage.
Flawed Scope – Missing or underpriced scope items, based on rushed assessments from inexperienced assessors.
Low Cash Offers – Cash settlements are often undervalued, missing key policy benefits and compensation offers.
Poor Repairs – Low quality, rushed repairs.
What Could I do next?
Every claim is different, but the following steps may be available to you to take with your claim:
Step 1 – Ask for a detailed explanation
Whether the claim has been unfairly declined or you’ve been given an unreasonable offer, you could ask the insurer to explain themselves. Ask for:
- A written decision/offer
- A copy of the assessment reports, scope of works and quotes they reviewed
- How the position aligns with their policy wording
Often, just getting a clear explanation helps you spot gaps, misunderstandings, or assumptions worth challenging.
Step 2 – Lodge a complaint
If their position still doesn’t sit right, escalate the matter to the insurer’s Internal Dispute Resolution (IDR) team. At this stage, it’s important to provide any further evidence you can that challenges the insurer’s own evidence.
Complaints teams will usually uphold the original offer unless you raise new points, provide new evidence or challenge the reasoning clearly.
Step 3 – Escalate to AFCA
Still not resolved? Lodge a complaint with the Australian Financial Complaints Authority (AFCA) at www.afca.org.au. AFCA is independent and free to use.
confused? over it? Want a second opinion?
If you are exhausted with the claims process or want the support of an expert claim advocate in your corner, submit an enquiry and we’ll review your claim, for free, and help you move forwards with confidence.
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Whether you need advice, support, or a second opinion, we’re here to help you understand your options and move your claim forward.
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