Who is affected?
Who should pay?
Who should be responsible?
Who should be protected?
Who is responsible for my home?
That’s what Youi’s recent flood transparency research unpacks, bringing perspectives of surveyed Australian homeowners into the conversation about flood risk.
Flooding is one of Australia’s most frequent and costly natural disasters, threatening homes, infrastructure and communities across the country. As extreme weather events become more frequent and severe, many Australian communities are increasingly confronted with the challenge of living with flood risk.
Communities, governments and industry all have a role to play in improving the understanding of flood risk, reducing exposure and strengthening preparedness.
Youi surveyed more than 1,200 Australian homeowners who has purchased home building insurance within the previous 12 months to better understand what they think is the fairest way to keep communities safe and make insurance more affordable into the future.
Understanding the scale of impact
Australians need a clearer picture of the scale and reach of flood risk across the country. Flood risk is complex and localised and does not just impact people living close to a river or body of water.
In fact, Youi’s research found that while flood risk is personally relevant to many respondents, the scale of exposure nationally is not well understood. While 37% believed they own a property exposed to flood risk, only 8% identified that more than two million Australian homes face some level of flood risk, which is consistent with analysis published by the Climate Council in partnership with PropTrack.
Flood risk can arise from a range of factors, including intense rainfall, river catchments, drainage systems and local geography. This means properties and communities can be exposed even where the risk may not be immediately obvious.
Understanding this risk is particularly important when buying a home. Before making an offer, prospective buyers should understand whether a property is exposed to flood or other natural hazards, whether insurance is available and what it is likely to cost. Insurance is an ongoing cost of owning a home, so it should form part of the overall household budget and inform a prospective buyer's assessment of a property.
Pleasingly among those who identified as flood exposed, two-thirds (66%) said they had been formally advised of the risk by an insurer, council, bank or other organisation that their property was in a flood-prone area.
A clearer understanding of flood exposure can help people make more informed decisions about where they buy and live, while helping governments and communities make better decisions about reducing flood impacts.
Views on planning and mitigation
Effective flood planning and mitigation in Australia requires a coordinated approach – and shared responsibility between government, insurers, developers and communities.
However, survey respondents expressed strong views on where the responsibility should land.
Among respondents who did not believe that they owned a flood-exposed property, two-thirds (66%) said they are unwilling or unsure about paying more on their insurance premium to help improve insurance affordability for households in flood-prone areas. While one-third indicated some willingness to contribute, most said they would only be willing to pay less than $300 extra per year on their insurance premiums.
The results indicate that the most effective way to improve affordability and resilience is to introduce measures directed at reducing or avoiding future exposure, rather than relying primarily on insurance subsidies.
Specifically, when asked to rank potential actions, 40% of respondents selected limiting development in flood-prone areas as their first priority. 20% followed by building flood defences, while only 10% selected insurance subsidies.
Nearly eight in ten (78%) supported either prohibiting developments in high-risk areas (46%) or only allowing them where flood risk can be substantially reduced through mitigation strategies (32%).
Decisions about where we build, how we build, and what mitigation measures are put in place sit largely outside the control of insurers. Governments and policy makers have primary responsibility for land-use planning, building standards and public mitigation infrastructure. The insights from the research suggest that respondents are wanting them to act.
How Australian’s can best prepare
Educated, connected communities are better positioned to act before, during and after a flood. By investing in preparedness before a crisis hits, Australia can reduce the impact on households and ensure communities are better equipped to respond and recover.
Here are some physical factors that could affect your home’s vulnerability during a flood event:
- Roof condition: Loose or cracked tiles, unsecured sheeting or weakened fasteners can increase the likelihood of rain entering your home.
- Building materials: Some types of timber cladding may be prone to swelling or leaking while plasterboard ceiling linings may also be susceptible to mould growth caused by high humidity after a flood.
- Foot-traffic: Flooring, decks or steps repeatedly stressed by foot traffic can develop cracks or wear, opening paths for water to intrude in heavy rain.
- Lack of maintenance: Failure to clear gutters, repair small cracks or reseal surfaces may allow water to accumulate and degrade materials, potentially compounding damage during severe weather.
- Landscaping and garden slope: Large paved areas and yards that slope toward low-lying homes can trap runoff and increase flood risk.
As an insurer committed to giving Australians the best chance to protect themselves, Youi has developed a series of practical resources that are readily accessible to all Australians. More information on how Australian’s can prepare can be found here at you.prepared.
The challenge facing Australia is only going to become more significant as our country continues to experience the combined effects of a changing climate and ongoing urbanisation.
Insurers are one part of the solution, but they cannot solve the problem alone. Insurers provide risk signals, pricing insights and expertise that help decision-makers understand exposure and consequences. Risk signals should not be muted. Clear signals can help governments, businesses and consumers make better decisions and support safer, more resilient communities.
Ultimately, this is about people. Public policy shapes the environment in which consumer outcomes are delivered. A fairer flood future requires coordinated action by insurers, governments, industry and communities.
References:
Source: Property Value Report – How climate change could worsen Australia's $42 billion flood risk - Climate Council
Source: Australian Government – Cladding systems
Source: Australian Government – Build flood resilient homes
Source: Cyclone Testing Station – Weather the storm, Level 1
Source: Australian Government – Design landscapes to protect your house from flooding
Source: Australian Government – Protect glass windows and doors from wind-borne debris
Disclaimer:
This data is sourced from a survey conducted by Lightspeed between 2nd September 2026 and 7th September 2026, involving 1,222 home owners aged 18 and above from all states and territories within Australia. Some percentages have been rounded to the nearest whole number. Survey results have not been independently verified by Youi and may not be representative of the general population. Youi makes no representation or warranty of any kind of the accuracy, adequacy, reliability, or completeness of the data and accepts no liability for any loss or damage of any kind suffered as a result of the use of or reliance on the data. Individual experiences may vary.
Any information contained in this article is for general information only and is not comprehensive advice. Any recommendations should be considered against your personal circumstances.
