Gold Coast storms: Residents still battling with insurers 12 months later
Twelve months on from a terrifying Christmas night storm that tore houses to shreds on the Gold Coast, some residents are still battling with insurers to get their homes repaired. Read our special report.
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Multiple Gold Coast homeowners are still awaiting repairs to their properties 12 months on from a catastrophic tornado-like storm that tore houses in its path to shreds.
As the Gold Coast prepares to mark 12 months since a night residents in suburbs including Upper Coomera, Oxenford, Helensvale and Coombabah will never forget, Insurance Council of Australia figures show almost one in 10 claims are yet to be finalised.
Theodore MP Mark Boothman – whose electorate took the brunt of the damage – has branded the “protracted battles” faced by some residents with insurers as “un-Australian”.
Gold Coast Mayor Tom Tate also hit out at the companies, saying settling claims “shouldn’t be so long and tedious”.
Among those to suffer serious damage was 83-year-old Eleanor Bressow, who shares her house in Helensvale with daughter and carer Donna, 60.
On that fateful night, when the storm struck with intense and frightening winds – a private weather station at Mt Tamborine had recorded speeds of 160km/h – Donna’s adult son and daughter and baby grandson were also in the house, where they had enjoyed a joyful family Christmas together.
“It was terrifying. I was born and bred on the Gold Coast I’ve never ever experienced anything like that storm,” Donna said.
“My kids had to actually lean up against the front door to try and hold it shut. It was blowing that hard here, and the rain was coming in that heavy and strong.
“It even got to the point where I asked the kids to leave the baby’s door open. He was asleep, but I said, ‘If this roof goes, and we’ve got to run downstairs, we’re gonna have to grab him as quickly as we can’.
“We were putting plans in place to get out if we needed to get out. It was that scary.”
The family survived the storm. However in its mere 30 minutes on the ground extraordinary damage had been done, including to their home.
“We had bits of people’s roof in the yard. There were branches everywhere,” Donna said. “It took us ages and ages to clean up. The days afterwards, it was a bit tough on everybody. There was no power and it was just a mess everywhere.”
A claim was made to insurer RACQ for the significant damage to the upper part of their home. That claim was quickly dealt with by the insurer, with rectification works completed.
However it later emerged significant damage was also done to a room beneath the main house due to water ingress which the Bressows determined was caused by the storm.
Repairs were estimated to cost at least $10,000, however RACQ disputed much of the claim and offered a settlement of just over $1700.
A long battle with the insurer ensued, which only ended last week when they agreed to cover the full cost of repairs four hours after being contacted about the case by the Gold Coast Bulletin.
Donna said the issue had caused enormous stress to her elderly mother, who recently suffered a stroke.
“Mum was really anxious about it. We’ve had really upsetting phone calls with RACQ where she sat there and cried the whole time. It’s been an ongoing thing,” Donna said.
“Mum’s recovery is so important. I’ve got to make this a stress-free environment and alleviate any anxieties she has. I’ve asked them can we please get this sorted now? And (until last week) all I got was well, either accept (the settlement offer) or take it to (regulator) AFCA.”
Speaking before news the claim had finally been accepted, Eleanor, a 24-year customer of RACQ, told the Bulletin through tears she had been deeply upset by the experience.
“I’ve never been so hurt,” she said. “I’ve only had one insurance company since my husband died and it’s been RACQ.
“I said to my doctor, I just can’t get through this any longer. It’s just too long. It’s everlasting and nothing getting done.
“And she said Eleanor ‘You’re not the only one’. She said there’s so many insurance companies not doing the right thing for folks.”
It has been a similar story for Darani and Mark Cumming, also RACQ customers, whose Upper Coomera home was also devastated.
While repairs have recently taken place at their property, Ms Cumming said it only came after months of tortuous back and forth with the insurer which included them rejecting “lowball” cash offers, while plenty more work remains to be done.
“The last offer we got was about a third of what it should have been. That was for the bedroom. That’s why we said, no (we don’t want the cash settlement), you’re doing the work. They offered us four grand for the bedroom and it just cost them 12.
“So we’re insisting that they organise the work and get the work done because the payout offers they’re making are just lowballing.
“They offered us four grand for our bedroom when the whole ceiling collapsed and it just costs the company (that completed the work) $12,000 to fix it.”
Mrs Cumming said it was distressing to still not be able to get back to normal 12 months after the damage was first done. She said she had spent an enormous amount of time on the phone, exacerbated by long waits on hold.
“They haven’t denied the claims, but they’ve made it bloody difficult. They’ve just held off and held off,” she said.
“Talk about traumatised by just arguing and arguing. And inefficient people coming out and saying all sorts of garbage.”
Customers of other insurance companies have related similar experiences, including an Oxenford couple who in September told this masthead about their lengthy battle with strata specialist Longitude Insurance.
The most recent figures from the Insurance Council of Australia also show as of November, almost one in 10 of more than 100,000 claims made as a result of Christmas 2023 storms had yet to be settled.
Speaking generally about the experience of Gold Coast residents, Mayor Tate said dealing with insurers needed to do better.
“The wind event is seven to 10 days and you think, ‘Yeah, well the wind’s gone, it’s over,’ but it’s not,” he said.
“The recovery process can take 12 months because rebuilding a family home, getting insurance to pay up, even doing the paperwork, you’re just being hit.
“You don’t even know where your computer is, let alone the paperwork. The process for insurance shouldn’t be so long and tedious.
“They ask questions, mate, look at the photo, the house was there before you can look at the Google Earth. Now the house is not there, the roof is gone. Fix the roof, let the money flow.
“That’s really where the insurance industry should do their own assessment about recovery because the bad will that’s generated means people will look elsewhere for a time of need, when you’ve been paying premiums and you expect a quick assessment.”
Mr Boothman, meanwhile, said it was “disappointing” to see families “continuing to struggle” with insurance claims.
“We need to support these families with their ongoing challenges a year on from the storm,” he said.
“These protracted battles are un-Australian and not in the best interests of either the insurance company or their customers.”
In a statement in response to questions about the cases outlined in this report, RACQ said that in “most cases” outstanding claims from last Christmas involved complex repairs that were ongoing.
The insurer said it was “committed to supporting members through the claims process” and to understanding the impact on vulnerable customers.
“As of 19 December 2024, RACQ Insurance had finalised 91.9 per cent claims related to the Christmas storms with the total cost of claims exceeding $128 million,” they said.
“We are working closely with our members and partners to progress the outstanding claims as quickly and efficiently as possible.In most cases the outstanding claims have complex repairs underway or require specialist involvement or maintenance work to be completed before the claim can be progressed. Often in these cases, it can take over 12 months to finalise all claims.
“We remain committed to supporting members through the claims process and understand the impact these events have on vulnerable members. Our staff are trained to identify and manage claims involving vulnerability and refer members to external specialist support for additional assistance if required. We also offer flexible claim and settlement options.
“With all our claims, RACQ’s preferred approach is to repair properties using our panel of quality builders as this provides our members with a lifetime guarantee on all repairs authorised by RACQ. However, members can elect for a cash settlement based on the reasonable cost of repairs which is determined by one of RACQ’s panel of builders or the member’s own builder.In some cases, a contingency amount may also be included.
“Where a cash settlement is requested or offered, our members are provided with a ‘Cash Settlement Fact Sheet’ which clearly outlines the options available to the member and recommends the option of seeking financial advice before accepting.”
PROTRACTED BATTLES WITH INSURERS ‘UNAUSTRALIAN’
By Mark Boothman MP, member for Theodore
The 2023 Christmas Day Storm lingers in the memories of many residents, both for its sheer destructive power and the human toll that it took.
On what should have been a festive and joyous occasion, homes and cherished possessions were destroyed and many residents were heavily inconvenienced. These lasting memories and physical damage have left a profound impact on our community.
On a typically hot and humid Queensland Christmas evening many families watched the intense lightning display from their homes not realising Mother Nature was about to inflict devastation on us.
This storm caused widespread destruction and the tragic loss of life in our community. The only saving grace was that our roads were largely clear, potentially preventing casualties.
In the storm’s immediate aftermath, the strength of our community banding together to help one another was humbling.
Neighbours came together, with their chainsaws and other tools to begin the monumental task of clearing driveways and roads.The community’s response was rapid and heartfelt - embodying the spirit of Aussie mateship.
The display of resilience and solidarity through a challenging and emotional time was on full display.
Volunteers worked tirelessly in sweltering and difficult conditions to restore our community.
Despite encountering occasional moments of frustration, the overwhelming response was one of support and gratitude. However, I was mortified with the abusive actions of some people sitting in their air-conditioned vehicles yelling abuse at volunteers. Yet, the overwhelming acts of kindness abounded, with residents offering ice-cold drinks to those labouring in the heat and many stepping up to assist their neighbours and volunteers on the ground.
The efforts of these unsung heroes – ordinary people who harnessed the true Aussie spirit to help their neighbours – will not be forgotten. They stood shoulder to shoulder with the emergency, council and community service workers, as well as the Energex employees who worked tirelessly through long shifts to restore power.
Their collective efforts helped bring a semblance of normality back to residents’ lives and provided hope amidst the devastation.
It is disappointing to see some families continuing to struggle with closure for their insurance claims.
We need to support these families with their ongoing challenges a year on from the storm. The frustration over protracted battles with insurance companies highlights a persistent issue many residents face and this is particularly hard to deal with as a new storm season is upon us. These protracted battles are un-Australian and not in the best interests of either the insurance company or their customers.
Finally, the incredible community spirit and resilience demonstrated during the clean-up and recover efforts is nothing but awe-inspiring.
Originally published as Gold Coast storms: Residents still battling with insurers 12 months later
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