Why this report matters for homeowners
Flood is Australia's most expensive natural hazard, and the numbers keep stacking up. The Insurance Council of Australia's 2024–25 report sets out how many homes are exposed, what recent seasons cost, and why that flows through to your premium and your rebuild choices. Page references below are to that report.
Around 1.36 million properties face some level of flood risk nationwide, and a large subset sit in the severe to extreme bands (Report, p. 2, 26–27). Extreme-weather losses have climbed to roughly $22.5 b over five years, about a 67% jump, driven by more homes in harm's way, higher rebuild costs and repeated events (Report, p. 2–3).
For 2024–25 alone, insurers recorded about $1.97 b in incurred losses across roughly 154,100 claims, with an average claim near $13,000. Around three-quarters of that value was personal lines, meaning ordinary households, not just big business.
What does that mean for you?
Premium pressure, stricter underwriting in hot spots, and harder choices after a flood: repair as-is, raise the home, or change materials and services so the next event does less damage. The report is blunt that where exposure stays high, pricing will reflect it.
Australia’s flood bill in plain language
When you hear billion-dollar loss figures, it’s easy to tune out. Here’s what they mean for a household budget.
Losses keep climbing because we've put more (and more expensive) homes in risky places, rebuild costs have risen, and some regions get hit again before they've recovered. Even without record-breaking weather, a flood through a denser suburb with pricier homes, cars and contents costs far more than the same depth of water did thirty years ago.
Australia also sits near the top of the world for per-capita extreme-weather losses, which makes our insurance market more volatile. Local insurers buy reinsurance (insurance for insurers) to spread their risk, and when global reinsurers face higher catastrophe costs, they charge more.
Those higher wholesale costs flow through to retail premiums, especially in the suburbs with the worst flood histories.
So premiums aren't just price hikes. They're a signal of risk and the real cost to repair or replace what's on the ground. Where exposure drops, through better planning, stronger standards or upgrades at your own home, pricing has room to come down.
Who bears the brunt: vulnerable communities
Flood risk and financial stress often overlap. The report estimates about 242,000 dwellings sit in the highest flood-risk bands, and more than 186,000 of them (roughly 77%) aren't insured for flood (Report, p. 10). Premiums in these areas can exceed $7,000 and sometimes $30,000, which pushes households to underinsure or drop flood cover altogether.
Taxes on premiums make it worse: state stamp duty and, in New South Wales, the Emergency Services Levy. The people paying the most for risk also pay the most tax on top.
The report also links exposure to lower incomes: around 70% of households in the highest flood-risk group are in areas with below-median incomes, and roughly 35% are in areas below the poverty line (Report, p. 29). High hazard, high premiums and less capacity to pay add up to gaps in cover and slower recovery.
What this means for you: if you’re in a mapped high-risk area, affordability pressures are real and the trade-offs are stark. But dropping flood cover altogether leaves you carrying the full rebuild risk.
2024–25 season at a glance: events and losses
The split by event helps explain repair time frames, claim sizes and where resources went.
Most of the season's bill came from Ex-Tropical Cyclone Alfred, which the Insurance Council declared a catastrophe: about $1.4 b, driven by widespread power loss, flash flooding and coastal impacts. The North Queensland floods added roughly $289 m, and the Mid-North Coast and Hunter event another ~$248 m. Average claim size varied by event, and was higher where homes were inundated longer, access was delayed, or specialist assessments were needed.
What this means for you: claim timing depends on event location and damage profile. Where there’s large-scale power loss, contaminated floodwater, or hard-to-reach areas, assessments and trades stretch out, scopes change, and the average payout rises—all of which slows the queue for everyone.
What actually helps: the report’s policy fixes (and why they matter to you)
Big reforms only matter if they change what you pay, whether you can get cover, and how fast communities recover. The report outlines a few levers with direct household impacts (Report, p. 26–29).
Flood Defence Fund and resilience programs. The Insurance Council proposes a decade-long national program: billions for levees, house-raising and retrofits, targeted buy-backs and local infrastructure. These reduce exposure before the next flood instead of mopping up after it. Where risk genuinely drops, like a suburb behind a new levee or a street of raised homes, insurers have room to sharpen pricing or terms.
Stable disaster funding. A rolling, indexed Disaster Ready Fund and better disaster governance would smooth out boom-bust investment, so mitigation isn't left until after the next event. Predictable funding lets councils plan multi-year projects like drainage, detention basins and evacuation routes.
Insurance taxes. Stamp duty and, in NSW, the Emergency Services Levy make already-expensive cover even harder to afford in high-risk postcodes. Removing or reforming them would cut household bills straight away, before any mitigation is built.
Better planning and stronger standards. The report argues for avoiding new homes in extreme-risk zones and progressively lifting building standards for known hazards, which modelling suggests could save about $4 b a year nationally once fully implemented. For homeowners, that means minimum habitable floor levels in mapped areas, flood-compatible materials on lower storeys, and raised services.
What this means for you: Policy change is not abstract. If your street’s risk falls because of a levee or your home’s services are raised above flood level, you’ve reduced the size and likelihood of a claim—and that’s exactly the kind of change insurers can recognise in pricing and cover terms.
Practical home-level measures the report points toward
Not every fix needs a bulldozer. The report's case studies and claims insights point to household steps that reduce damage, speed up claims and, in some cases, help pricing over time (Report, p. 10–15, 22–25).
Target the hazard you actually face. If your risk is riverine flooding, think floor heights, house-raising, and keeping critical services above predicted levels. For overland flow, focus on site drainage, thresholds, and door/gully protection. Coastal areas need attention to storm-tide, corrosion, and power resilience (Report, p. 13–15).
Protect services and the first metre. Raise switchboards, NBN gear and routers, hot-water systems and air-con outdoor units above mapped flood levels. Use flood-compatible materials at ground level, such as cement sheet linings, tile or vinyl with waterproof adhesives, and removable skirtings, so a wet room can be dried and refinished without full demolition (Report, p. 13–15).
Control water paths. Maintain gutters and downpipes, grade the ground to fall away from the slab, keep yard drains clear, and install backflow prevention where the plumbing allows. Small works like these can keep shallow flows outside and reduce contamination inside (Report, p. 13–15).
Plan for outages. Widespread power loss can drive thousands of contents claims (food spoilage, electronics). Have an outage plan—coolers/ice, surge protection, and safe procedures for generators if you use them (Report, p. 13–15).
Document early, document well. The fastest claims shared the same traits: photos before clean-up, clear flood-height marks, and itemised contents. Keep maintenance invoices, building plans, and any prior scopes of work on file. If you need expert input (hydrology/engineering), ask for the report and keep it with your claim (Report, p. 22–25).
Know the process and your rights. The report highlights common pain points—communication, scope clarity, temporary accommodation, and how “like-for-right” is applied. If you disagree with a decision, you can request a review and use the formal complaints path (Report, p. 22–25).
Local rules still apply. In Queensland, flood hazard areas and the minimum habitable floor levels in them are set by your council under the Queensland Development Code MP3.5 (Construction of buildings in flood hazard areas) and the council planning scheme. Check your council's flood overlay and the conditions on your development or building approval before you build or renovate (Report, p. 28–29). For existing homes, Queensland has funded house-raising and retrofits after past floods through programs such as the Resilient Homes Fund, so check what's currently available.
What this means for you: Small, targeted changes reduce the size of the next claim and the time you’re out of your home. Over time, demonstrated risk reduction is exactly the kind of thing insurers can recognise in pricing and terms.
Navigating claims and community support
A smooth claim isn’t luck—it’s process
The report spells out where claims bog down and what helped households move faster: clear communication, a documented scope of works, early planning for temporary accommodation, and access to expert reports when needed (Report, p. 22–25).
Common pain points. Many complaints centre on not knowing what's next, disputes over "like-for-right" scopes, delays waiting for assessors or trades, and uncertainty about temporary accommodation. Complex claims (structural issues, long inundation or contamination) often need hydrology or engineering input, which takes longer but leads to a more accurate scope.
What insurers did on the ground. Since July 2024, insurers have run 34 in-person events—town halls, recovery hubs, one-on-one sessions—to answer questions, collect documents, and escalate stuck files. Dedicated hubs operated in Townsville and Taree after major events. These forums cut down on back-and-forth emails and helped customers understand decisions.
Standards and safeguards. The industry is rewriting its Code of Practice and developing a vulnerability framework to better support customers in hardship or with accessibility needs (Report, p. 3, 24–25). Where expert evidence is needed, the report outlines a best-practice approach—clear instructions to experts, transparent reports, and sharing those reports with customers—so you’re not left guessing why a scope changed (Report, p. 24–25).
How to keep your claim moving:
- Ask for a written plan: Request a simple timeline showing assessment, scope, authorisation, and repair stages, with named contacts (Report, p. 22–23).
- Get the scope—and the “why”: Ask for the detailed scope of works and any expert reports used to create it. If the scope is provisional, note the triggers for change (Report, p. 24–25).
- Temporary accommodation: Confirm entitlements early, including duration and review points if repairs run long (Report, p. 22–23).
- Escalation path: If you disagree with a decision, use the internal dispute resolution process and keep dates, emails, and call notes. You have a formal complaints pathway if issues remain unresolved (Report, p. 22–23).
What this means for you: Clarity and paperwork win. The households that documented early, asked for scopes and reports, and used the escalation steps saw fewer surprises and quicker approvals.
Frequently Asked Questions
1) Why are flood premiums so high in some suburbs, and what can actually bring them down?
Premiums reflect exposure (where and how we build), the cost to repair/replace, and the wholesale price of reinsurance. High-risk postcodes—especially where homes have flooded repeatedly—see steeper pricing. What moves the needle: genuine risk reduction such as levees and drainage upgrades, raising homes or services above mapped levels, and stronger standards. Removing insurance taxes (stamp duty and the NSW ESL) would lower invoices immediately, independent of risk changes (Report, p. 4–9, 26–29).
2) What's the difference between a "Significant Event" and an "Insurance Catastrophe"? Does it change my claim?
These are industry labels the Insurance Council uses to track and coordinate its response to big events (e.g. Ex-TC Alfred was declared a catastrophe). Your entitlements come from your Product Disclosure Statement and policy schedule, not the label on the event (Report, p. 12, 18–19).
3) My area has flooded twice in five years. Should I repair, raise the house, or consider relocating?
Where flooding repeats, "like-for-like" repairs can lock in the same loss cycle. The report points to house-raising and targeted buy-backs in extreme locations as part of a funded resilience program. Ask a designer or engineer to cost the options, and ask your insurer how each one affects insurability and pricing (Report, p. 16–17, 26–27).
4) Do insurers recognise specific home-level flood measures when pricing?
The report indicates that when exposure drops—through elevated floor levels/services, resilient materials, or community-scale works—pricing and terms have room to improve. It doesn’t list universal “credits,” so ask your insurer which measures they’ll recognise for your address and how they’ll record them on your file (Report, p. 24–25, 28–29).
5) Why did my claim need hydrologists or engineers, and why did it take longer than my neighbours’?
Complex claims—longer inundation, structural questions, or disputed water paths—often require expert reports. Access delays, contamination, and limited regional trades extend timelines. Expert findings can also change scopes mid-stream, which adds time but avoids under-repair (Report, p. 18–19, 24–25).
6) What documents should I keep ready before storm season to simplify claims?
Keep a “claims-ready” pack: policy schedule; photos of each room and contents; recent maintenance invoices; any building plans/floor levels; and an itemised contents list. After an event, photograph flood heights before clean-up and keep damaged-item evidence as asked (Report, p. 10–15, 22–23).
7) How do stamp duty and the NSW Emergency Services Levy (ESL) affect my premium?
They load tax on top of already high base premiums in riskier postcodes, worsening affordability. The report recommends reform/removal to reduce bills immediately while longer-term mitigation is built (Report, p. 28).
8) What support exists if I’m a vulnerable customer during a disaster?
The industry is rewriting its Code of Practice and developing a vulnerability framework. Insurers ran in-person hubs and town-halls to assist with documentation, escalation, and temporary-accommodation questions. If you need extra help, tell your insurer—process adjustments are part of the evolving framework (Report, p. 3, 22–25).
9) Will stronger building standards really save money overall?
According to the report’s cited modelling, progressively lifting standards to address known hazards could deliver about $4 b per year in national savings once fully implemented—through less damage and faster recovery (Report, p. 28–29).
10) Why do regional claims often take longer to resolve?
Distance and access constraints, fewer local assessors/trades, longer material lead times, and the need for specialist reports all stretch timelines. These factors also drive higher average claim sizes compared with metro events (Report, p. 18–19).
Further Reading
Why New Homes Still Flood in AustraliaBrand-new homes are flooding—and it’s not just bad luck. From minimum slab heights and poor drainage to disappearing inspections and planning failures, this post breaks down why it’s happening and what builders, certifiers, and buyers must do to stop it.
Floor Wastes in QLD Laundries: Insights & SolutionsA question came in from a reader so we thought it would be nice to pass on our answer in case it helps someone else. Read the exchange below and view the referenced material mentioned in our reply.
Housing, Disasters & Homelessness: A Failing SystemAustralia’s disaster responses often forget one key thing — housing was already broken before the floodwaters hit. This blog breaks down the 2025 national report on housing, homelessness, and disasters, and what it means for future homeowners and residents across the country.
Understanding Construction Firewalls: Fire SafetyBuilding a new home? Learn about construction firewalls and fire barriers—essential for protecting your property and loved ones. Discover the types, materials, and regulations that ensure fire safety in residential construction. Stay safe with these critical fire protection measures.
Choosing the Right Screws for Metal Roofing: A GuideLearn why Class 4 corrosion resistance isn’t enough for metal roofing screws. Discover the importance of opting for Class 5 or higher rated screws to ensure long-lasting durability and protection against rust and corrosion, safeguarding the integrity and longevity of your metal roof.
Building Integrity: Balancing Time, Cost, and QualityBuilding your home involves balancing time, cost, and quality. In this post we explain how home owners can ensure construction integrity, addressing key concerns such as defects, professional accountability, and ethical standards.
Builderpulse Metric: Assess Your Builder’s Financial HealthLearn how the BuilderPulse Metric (BPM) can be used to assess a builder’s financial health and capacity (pulse). Ensure your builder is capable of delivering work before signing a contract.
Optimizing the 4 Control Layers for High-Performance HomesBuilding an energy-efficient home requires a good understanding of the four control layers: water, air, vapour, and thermal. In this post we look into how project builders can optimise these layers, ensuring homes are comfortable, sustainable, and cost-effective.
