Buying a House With a Flood Overlay in the Illawarra: What to Check Before You Make an Offer

A flood overlay is a reason to check more, not a reason to walk away. It also isn't something to find out after you have exchanged.

The overlay tells you the land has been mapped as having some level of flood risk. It doesn't tell you how often water reaches the property, how deep it gets, or what it will cost to insure and finance. Those answers sit in other documents, and you need them before you offer, not after.

Our flood overlay explainer covers what the term means. This is the practical follow-up: what to check, in what order, in Wollongong and Shellharbour.

Step 1: Get the planning certificate for the exact address

In NSW, a section 10.7 planning certificate explains the planning controls and constraints that apply to a property. Service NSW notes that a 10.7(2) certificate lists the level of flooding among those constraints. Service NSW planning certificates

Your contract of sale will usually include one, but it may be out of date. Ask your conveyancer or solicitor whether you should order a current one, and read the flood section yourself. A property can carry a low-risk note or a high-risk one, and the practical difference is large.

Step 2: Ask the council for flood levels, not just the overlay

Each council holds its own flood information, and what you can get differs.

• Wollongong City Council: it can provide flood level information, including past and expected levels, but it doesn't hold it for every property. Council advises calling (02) 4227 7111 to check availability before you apply. A combined 10.7(2) and 10.7(5) certificate shows whether the property is flood affected and, where available, its flood risk category. Wollongong City Council flood information

• Shellharbour City Council: you can request flood level information for a property using a flood level information request form. The council page also lists the catchment studies for areas including Shellharbour and Shell Cove, Minnamurra River, and Lake Illawarra. Shellharbour City Council flood information

Flood levels matter because they tell you something the overlay cannot: how a mapped level compares with the actual floor height of the house.

Step 3: Get an insurance quote before you exchange

This is the step buyers skip most often, and it can change the whole decision.

MoneySmart notes that for homes at high flood risk, premiums may be higher or flood cover might be excluded from the policy. It also advises checking the product disclosure statement to confirm exactly what flood cover is included. MoneySmart: storm, flood and fire insurance

So ask for a written quote for that address, and ask the insurer directly:

• Is flood cover included, or is it an add-on?

• What is the premium with flood cover?

• Are there any exclusions or higher excess for flood?

If you cannot get flood cover at a price you can carry, that belongs in your decision, and probably in your offer.

Step 4: Tell your broker before you sign anything

Lenders can look at flood risk and insurance when they assess a loan. We are not mortgage brokers, and we do not give finance advice, so raise it with your broker early, with the address and the overlay detail in hand. If the insurance answer in Step 3 is unclear, your lender's view may be unclear too.

Step 5: Ask the selling agent about flood history, and get it in writing

Ask directly whether the property or street has been affected by water, and ask for the answer in writing. A verbal "it's never flooded" is not evidence. Compare whatever you are told with the council information, the planning certificate and the building report.

Common mistakes

• Treating the overlay as a yes-or-no. It is a risk band, not a verdict. A low-risk overlay and a high-risk overlay are very different purchases.

• Checking insurance after exchange. By then, your options are limited.

• Relying on a map screenshot. Flood mapping is updated as studies change. Use the council's current information for the specific address.

• Pricing the discount in your head. A lower asking price does not help if the insurance cost or lending position makes the property unworkable for you.

What this means for your shortlist

Order your checks so the cheap ones come first:

1. Planning certificate for the exact address.

2. Council flood level information.

3. Written insurance quote including flood.

4. Broker conversation about lending.

5. Written answers from the selling agent.

6. Then decide on price, with the risks you have found priced in.

Do all of this before exchange. If any step fails, you have found out while you still have choices.

This article is general information, not legal, insurance or finance advice. Speak to your conveyancer or solicitor, your insurer and your broker about your own situation.

Talk through your brief with a local buyer's agent if you are looking at a property with a flood overlay and want a second set of eyes before you offer. We act only for the buyer.

FAQ

What is a flood overlay on a property?

It is a planning designation showing the land has been mapped as having some level of flood risk. It does not mean the property floods regularly. See our flood overlay explainer for the full definition.

How do I find out if a property in Wollongong is flood affected?

Check the Section 10.7 planning certificate for the address and ask Wollongong City Council about flood level information. Council does not hold flood levels for every property, so call first to check availability.

How do I get flood information for a property in Shellharbour?

Shellharbour City Council provides flood level information on request through a flood level information request form on its website.

Can I still get home insurance on a property with a flood overlay?

Often you can, but flood cover can cost more or be excluded for higher-risk properties. Get a written quote for the specific address, including flood, before you exchange contracts.

Should I avoid buying a house with a flood overlay?

Not automatically. The overlay prompts you to check the planning certificate, council flood levels, insurance, and lending before you offer. Whether the risk is acceptable depends on what those checks show and what you are paying.