Lismore’s Alan Blanch, Oscar Bakos priced out of flood insurance

Lismore small business owners are ropeable they were priced out of flood insurance by companies as they question their next move after devastating floods. Here’s what happened.

Lismore small business owners say they are on the brink of walking away for good after they say they were priced out of flood insurance.

Flood-affected businesses in the heart of Lismore have quickly begun the clean-up after being submerged in a torrent that has so far claimed five lives.

Alan Blanch couldn't afford premiums on flood insurance for his businesses on Ballina Road before the Wilson River engulfed it Picture: Nicholas Rupolo.

The bustle of their down town trade has been replaced with the sounds of whirring of generators and sirens.

The smell of rubbish, spoiled food and mud engulf the air as business owners pick their lives out of the gutter piece by piece.

Alan Bench was busy on Thursday clearing out equipment from The Bunker Health and Fitness and Lismore Infrared Sauna.

The Ballina Road stores had only been accessible by boat just two days earlier.

He has been a business owner for more than a decade in Lismore having run his gym and sauna for seven years and a Blockbuster video store before that.

He said he was quoted $2000 a month for flood insurance for his gym and sauna a few years ago and passed on the quote because it was unaffordable.

Now, he and his wife Trudy are picking the pieces of their lives out of their mud-soaked gym as they think of where to go next.

Trudy Blanch begins the flood clean up with her husband Alan at The Bunker Health and Fitness on Ballina Road Picture: Nicholas Rupolo.

Mr Blanch said he lost tens of thousands of dollars of equipment including a $10,000 sauna and $4000 worth of mats and gym equipment.

“As soon as you put your postcode in a red flag pops up,” he said.

“They will do it and offer it but the premiums are that high we can’t afford it.”

Mr Blanch said some businesses would never come back and pleaded for the state and federal governments to make changes to ensure the cost of premiums were brought down.

Deeper into the heart of Lismore, Toy Kingdom operator Carmel Horneo just got off the phone to her broker.

Carmel Horneo ran Toy Kingdom on Woodlark Street in Lismore but her flood insurance will barely cover the cost of her flooded stock. Picture: Nicholas Rupolo.

She managed to score a flood insurance package a few months ago worth $16,000 a year, but in the wake of the devastation she now knows it won’t be enough.

Mrs Horneo said her insurance payout wouldn’t come close to covering the $300,000 bill for all her flooded stock on top of the costs associated with the building, which she also owned.

“It’ll probably be the last time we ever see insurance,” she said.

“Our premium won’t cover the loss of our stock so where do we start with the building?”

The inside of Toy Kingdom on Woodlark Street after the Wilson River engulfed the business Picture: Nicholas Rupolo.

Mrs Horneo finds herself in the stressful position of having to choose what she does next with her life.

“I have lost so many hours sleep thinking about what might happen – I’m so torn, even though it’s my business I almost feel like I want to walk away,” she said.

Meanwhile, Oscar Bakos has officially postponed his retirement after his Uralba Street Dental Clinic was submerged by the Wilson River.

Oscar Bakos says the cost to repair his Uralba Street denture clinic will be in excess of $200,000. Picture: Nicholas Rupolo.

Mr Bakos does not have flood insurance, but said he was quoted a premium of more than $30,000 a year after the 2017 floods.

His workers helped him rip up soaked carpet while all the supplies he had been stockpiling because of Covid-19 have been destroyed.

He says it’ll cost $100,000 just to replace his stock and another $100,000 for the building repairs.

Oscar Bakos’ Uralba Street Denture Clinic was ravaged by flood water. Picture: Nicholas Rupolo.

“We’ve been priced out of insurance,” he said.

“Seven years ago our rep said we can’t reinsure for flood but I’ll look after you if anything happens, which was bull****.

“We changed insurers but no insurer would give us any amount of cover.”

He knows the rest of the business community has been in the same boat and has a dire warning for the government if it isn’t fixed.

“We say to the government, pay us to rebuild because if we don’t, a town like Lismore will disappear, it won’t exist anymore,” he said.