Flood insurance claims still yet to be processed as many suffer

Many are continuing to suffer in the aftermath of the Lismore floods, with insurance companies failing to process claims. Read some of the horror stories as people wait to rebuild their lives.

Battered and bruised, residents are still waiting desperately for their insurance claims to be processed, almost six months after the catastrophic flood.

As of June, the Insurance Council of Australia reported 224,609 claims in the Northern Rivers and SEQLD alone at an estimated $4.8 billion – with only 30 per cent of these processed.

Some have taken to the Australian Financial Complaints Authority (AFCA) to have their flood insurance settled, while others have employed unhealthy habits - such as drinking - to numb the pain.

“A nightmare”

Crystal Lenane, 39, like countless others, lost just about everything.

She said Lismore was a place of “love, generosity and good vibes” after the floods, as people bonded together.

“We were met with insurance at our house right after the floods and told they’d cover the rebuild and have us back in no time,” Ms Lenane said.

She put her life’s trust on Allianz that things would return to normal soon.

“We felt that vibe and wanted to remain in Lismore and rebuild this amazing community,” Ms Lenane said.

Now 17 weeks on she said insurance has been a “nightmare”.

“There’s been no communication, we’ve had no help and they haven’t even completed the make safe yet,” she said.

A make safe is a measure that allows properties to be deemed safe to inhabit.

“They’re meant to help us with accommodation but we’ve had no support,” Ms Lenane said.

Having now been told the cost of repairs is well over the insurance cover, she said her family will likely be paid out and will have to fix the house on their own.

The mum of two said the atmosphere in Lismore has now changed to “frustration and exhaustion”.

She’s now moving into a caravan with her kids and husband due to rental costs, and fears her property will have lost all value.

“What do we do now? We can’t buy somewhere flood free, as property prices are crazy in NSW,” she said.

An Allianz representative said “the large number of hydrology reports being commissioned by Allianz, and other insurers, has resulted in delays in receiving these reports, which has, regrettably, flowed on to delays in finalising some claims.”

Dazed, confused and angry

Ty Rennie, 47, had just started a new job when the floods hit in Coraki – destroying his house and his brand new dream car.

“I’m now sitting in my caravan like a crazy dude,” Mr Rennie said.

Dealing with “CommInsure” Mr Rennie said he feels “forgotten”.

His claim was set to be processed until it was suspended recently without being contacted – meanwhile he remained jobless and without a car or home.

“I feel dazed, confused and angry,” he said.

Ty Rennie has been dealing with insurance claims for almost 6 months. He had only just started working a new job when the floods hit in Coraki – destroying his house and his brand new dream car.

Having spent hours calling and emailing to find solutions, he alleges CommInsurance “lied” about damage reports, neglecting to honour his policy.

“I’m mortified at the total disregard for my life and property,” Mr Rennie said.

The lack of communication has lasted four months – with notification a strip-out was to commence, only for this to be suspended as well.

“I won’t tolerate this disrespectful behaviour from a big insurer. It‘s deplorable and I will hold them accountable for the flood destroying my life,” he said.

The process has taken a toll on Mr Rennie.

“I became an alcoholic. My health and wellness is obviously not a priority. Shameful, disrespectful and totally un-Australian,” he said.

A complaint has been made on Mr Rennie’s behalf, however a resolution isn’t set to be made until August 4 – almost 6 months after the flood.

“It's simply not quick enough. I need this rectified now. My life depends on it,” Mr Rennie said.

A full-time job

Russell Lean, 62, from Lismore is insured with Budget Direct and has experienced similar headaches, resorting to AFCA for a resolution.

“At the beginning I rang them right away, and I was told four different things by operators,” Mr Lean said.

He said details were not taken into account, such as “storm water run off”.

Russell Lean and his wife are insured with Budget Direct and have needed to resort to AFCA for a resolution on their flood insurance claims.

Hydrology reports are being relied on – with reports subcontractors have been hired and are needing to return several times just to re-clean properties.

Eventually, Mr Lean went through AFCA to make progress.

“It’s been a full-time job since February to get claims through,” Mr Lean said.

Favourable outcomes have been reported if insurance companies authorised astrip out without a waiver signed.

Meanwhile, those residing outside flood plain with no flood coverage are at a loss, while many others must continue to endure pain from the floods.