Does Contract Works Insurance Cover Flood Damage?
Does Contract Works Insurance Cover Flood Damage? Everything You Need to Know
When you’re working on a construction project, one unexpected storm or flooding event can cause major and costly damage. Materials can be destroyed, partially built works can collapse, and delays can push your project over budget. This is why many builders and tradies ask:
“Does Contract Works Insurance cover flood damage?”
The short answer is:
✔ Yes, Contract Works Insurance typically covers flood damage by default.
However, this can change if a specific endorsement is added to exclude flood.
Let’s break this down so you know exactly what you’re protected against.
Does Contract Works Insurance Include Flood Cover?
Most Contract Works Insurance policies automatically include flood cover as part of the overall protection for the works, unless:
- The insurer specifically excludes it
- You have opted for a flood exclusion to reduce premium
- Your project is in a high-risk flood zone and the insurer declines the flood component
If there is no exclusion or endorsement, then flood is considered a standard insured event alongside:
- Storm
- Rainwater
- Fire
- Vandalism
- Accidental damage
- Theft (varies)
- Malicious damage
So by default, yes, your works are protected against flood.
When Flood Might Not Be Covered
Even though flood cover is typically included, some insurers may add a Flood Exclusion Endorsement, which removes flood as an insured event.
This might be added when:
- Your project location has a history of flooding
- The site is near rivers, lakes, creeks, or low-lying areas
- The premium becomes significantly higher if flood is included
Always check your policy schedule for wording like:
“Excluding Flood” or “Flood Endorsement: Not Covered.”
If you see this, you do not have flood cover.
Why Flood Cover Matters More Than Ever
Australia has experienced increased flooding events in recent years. For builders, this means:
- Partially completed work is extremely vulnerable
- Excavations can fill with water
- Slab work can be impacted
- Frames can shift, warp, or collapse
- Stored materials can be destroyed
- Delays cost money, labour, and reputation
A single flood event can cost tens or hundreds of thousands of dollars.
What Flood Damage Can Claim Under Contract Works Insurance?
If flood is included (no exclusion endorsement), your policy can cover:
✔ Damage to the project under construction
Example: A flood damages frames, trusses, insulation, or internal install materials.
✔ Damage to materials stored on-site
Example: Timber, tiles, appliances or fixtures ruined by rising water.
✔ Damage to temporary structures
Example: Scaffolding (if included), or temporary fencing.
✔ Costs to repair, replace, or redo works
Contract works cover is designed to restore the job back to where it was pre-loss.
Each policy is different, but generally the protection is extensive if flood is included.
What Flood Cover Does Not Include
Even with flood included, your insurer may not cover:
- Poor workmanship
- Incorrect site drainage design
- Landscaping or soils that aren’t part of the contract
- Tools (covered under a separate Tools/Equipment policy)
A broker can review this for you and explain any gaps.
How to Check if You Have Flood Cover
To confirm whether your Contract Works Insurance includes flood:
- Check your policy schedule
Look for an endorsement list. - Read the policy wording section: “Insured Events”
Flood should be listed, unless excluded. - Look for exclusions like:
- “Flood Excluded”
- “No cover for flood”
- “Endorsement: Flood Not Included”
- Ask your broker to review the policy
They’ll confirm in minutes.
Why Using a Broker Helps, Especially With Flood Cover
Brokers understand the fine print and can identify whether flood is:
- Included automatically
- Excluded by endorsement
- Optional for an extra premium
- Required by your contract
Most importantly, a broker can negotiate with insurers, especially in high-risk areas.
Why Morgan Insurance Brokers Is the Best Choice for Contract Works Insurance
At Morgan Insurance Brokers, we are construction insurance specialists. We help builders, tradies, and contractors secure the right protection, including flood, without paying unnecessary premiums.
Here’s why our clients trust us:
- ✔ We compare multiple insurers
- ✔ We identify hidden exclusions (like flood endorsements)
- ✔ We tailor cover to your exact project requirements
- ✔ We help you understand what’s included and what’s not
- ✔ We assist you throughout the claims process
- ✔ We save you time, stress, and expensive mistakes
When it comes to flood cover, the details really matter, and we make sure you’re never left exposed.
Conclusion: Yes, Contract Works Insurance Usually Covers Flood, But Always Check.
Most builders assume flood is excluded, but the reality is Flood is usually included automatically But an exclusion endorsement can remove it without you realising.
The safest approach is to have a broker review your policy so you’re not caught off guard when a claim occurs.
