Flood inquiry: Rochester residents share their trauma post-flood

Residents of flood-affected Rochester have aired concerns of insurance payment delays and underpayment of cash settlements at a federal inquiry today.

Flood-affected communities have described their dealings with insurers as “overwhelming” and “dementing”, as they voice their stories of recovery following the 2022 floods.

And they say better legislative protections for people making insurance claims could mitigate mental health concerns and see people return to their homes quicker in the face of flood and fire.

Community members spoke on Thursday at a federal parliamentary inquiry into insurers’ responses to the 2022 major floods at Rochester, which has airedconcerns of insurance payment delays, underpayment of cash settlements, and inadequate scope of works for damaged properties.

The township of Rochester was inundated with flooding again in January this year.

Kialla resident Sarah Thompson said she and her partner lived in a caravan for almost 12 months while waiting for their claim to settle.

“Our experience of the insurance system was confusing, it was overwhelming, and I think the best way to describe it was dementing,” Ms Thompson said.

She said despite having adequate resources and education she found it “impossible” to navigate the insurance system.

“We settled our claim … spending hundreds of hours doggedly pouring over engineer reports and the policy disclosure statement. I even read a legal textbook,” Ms Thompson said.

“We had three brokers, two loss adjusters and two contacts at the insurance agency, much critical information was lost in translation … and we really didn’t know who was on our side.

“We’ve got evidence of the loss adjuster engaging in both misleading and intimidatory behaviour. We had to engage an independent engineer … he found multiple critical issues with the loss adjuster’s engineering report.”

Rochester flood recovery committee chair and lifelong Rochester resident Leigh Wilson said the township had experienced “issues on steroids” since being hit with floods.

“ … the events of 2022 exposed 90 per cent of our population to direct flooding, impact, overflow flooding of their houses within the township … it effectively affected everybody within the town,” Mr Wilson said. 


A drone view shows the floodwater impact that affected the Rochester township on January 9, 2024 in Rochester, Australia. Picture: Diego Fedele

“Even for those people that their house wasn’t flooded, typically their business was or their place of work. Almost everybody they knew was affected by flooding … that level of trauma is widespread.”

He said his own mother’s experience living in a caravan for about five months while dealing with insurance builders highlighted the need for clear communication and accurate scope of work assessments after natural disaster.

His mother’s insurance company valued scope of works at about $120,000, however a family member who worked in construction assisted in going through the assessment.

“ … we reapplied and the payout was around $230,000 … that additional $90,000 made sure that my mother, once we got the payout, was able to have the works done … and a couple of weeks ago she was back in a house,” Mr Wilson said.

Mr Wilson said the approach to dealing with natural disaster, particularly floods, needed to change.

“We’re really strange in this nation and we still haven’t got it right … we really know bushfire, and yet the impact from flooding is incredibly significant,” Mr Wilson said.

Rochester Community House manager Amanda Logie said she has heard the “good, the bad, the ugly, and everything in between” of dealings with insurers since the floods hit in 2022.

“As an organisation, we are seeing people come in a crisis first-hand. And we were also the first organisation in the community to have mental health support on the ground to support many of the residents,” Ms Logie said.

“I think with insurance companies, that’s one thing that they are very quick to not actually be proactive and look after their clients’ mental health and well being. A lot of them do actually have that support, but it’s not offered upfront. And so that has been a massive issue.”

Ms Logie said some examples she’s seen in the past 18-months has been payment delays, underpayment of cash settlements, lack of details within scope of works, and even residents bringing in scope of works reports with entire rooms missed.

“The communication is quite poor,” Ms Logie said.