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How to claim water damage on your insurance

Flood, storm or rainwater? In Australia the wording decides whether you are covered. How to work out your cover, lodge the claim, and avoid the mistakes that get claims knocked back.

The single most important thing to understand about an Australian water damage claim is that not all water is treated the same. Whether you are paid can come down to where the water came from, and that is written into your policy.

Flood vs storm vs rainwater

Since June 2012, Australia has had a standard definition of flood: the covering of normally dry land by water that has escaped from a lake, river, creek, watercourse, reservoir, canal or dam. Flood cover is often a separate or optional part of a home policy.

Storm and rainwater damage is usually different. Even a policy that excludes flood may still cover you when rain falls naturally and inundates your home, or when a storm drives water in through the roof. The Insurance Council of Australia notes that most insurers treat rainwater runoff as part of storm cover, though some will not cover runoff if you declined flood cover.

Because there is no single legal definition of storm or runoff, the exact words in your policy schedule matter. Proving which event caused the damage can get technical, and insurers sometimes rely on hydrologists to decide. Read your product disclosure statement and, if you are unsure, ask your insurer to explain your cover in writing.

Lodging the claim, step by step

Document first. Take photos and video of everything before you clean up or throw anything out, including the source of the water and the water line on the walls.

Contact your insurer as soon as possible to lodge the claim and get a claim number. Ask what they need from you and whether they will send an assessor.

Do not throw damaged goods away until you have checked with your insurer, unless they are a health hazard, in which case photograph them thoroughly first. Keep samples where you safely can.

You can make safe temporary repairs to prevent further damage, for example tarping a roof, and you should keep all receipts. Do not start permanent repairs before the insurer has assessed the damage.

If your claim is delayed or denied

You have a right to ask for the reason in writing and to see any expert report the insurer relied on. If you disagree, you can use the insurer's internal dispute resolution process and then the Australian Financial Complaints Authority, which is free. Free financial counsellors and community legal centres can also help.

Sources

• Insurance Council of Australia, Flood insurance explained
• Financial Rights Legal Centre, Flood insurance factsheet