This manuscript deals with the cavitation erosion resistance of low-velocity oxy-flame (LVOF) sprayed Al2O3–40%TiO2/NiMoAl cermet coatings, a new functional application of cermet coatings. The aim of the study was to investigate the cavitation erosion mechanism and determine the effect of feedstock powder ratio (Al2O3–TiO2/NiMoAl) of LOVF cermet coatings on their cavitation erosion resistance. As-sprayed coatings were investigated for roughness, porosity, hardness, Young’s modulus. Microstructural characteristics of the cross-section and the surface of as-sprayed coatings were examined by light optical microscopy (LOM) and scanning electron microscopy (SEM) equipped with the EDS and XRD methods. Coatings cavitation tests were conducted in accordance with the ASTM G32 standard with usage of reference samples made from steel, copper and aluminum alloys. Cavitation erosion resistance was measured by weight and volume loss, and normalised cavitation erosion resistance was calculated. Surface eroded due to cavitation was examined in successive time intervals by LOM and SEM-EDS. On the basis of coating properties and cavitation investigations, a phenomenological model of the cavitation erosion of Al2O3–40%TiO2/NiMoAl cermet coatings was elaborated. General relationships between their properties, microstructure and cavitation wear resistance were established. The Al2O3–40%TiO2/NiAlMo composite coating containing 80% of ceramic powder has a higher cavitation erosion resistance than the reference aluminium alloy.