Insurance companies are still processing claims made after 2022 floods

ABC NEWS (Australia)

Over the past two years, floods have ravaged the low-lying areas of Australia, breaking riverbanks and inundating homes. New figures show more than 6,000 Australians are still waiting for their insurers to pay out as the industry grapples with one disaster after another. It has left many living in precarious accommodation until their claims are resolved.

Transcript

00:00 Shelly Sybaris is living in a caravan after her home was destroyed by floods in 2022.

00:07 I came home and yeah, devastated. Just absolutely devastating.

00:14 That was the initial quote.

00:16 Adding to her trauma, dealing with her insurer who claimed some damage was pre-existing,

00:21 it offered her less than half her insured amount.

00:24 I've dealt with RACV for 30 years, never had a problem. I don't know why they're doing this to us.

00:32 New figures show 6,500 out of 160,000 house insurance claims from the major four floods of the past two years are still outstanding.

00:43 A federal parliamentary inquiry is looking at insurers' response to recent floods.

00:48 The insurance system is broken and it needs urgent reform.

00:54 Financial counsellors say they're hearing from new clients daily who need insurance help.

00:59 They are coming in with issues like delays, claim denials, problems with strip outs of their properties,

01:09 problems with accessing trades and supply of goods and also issues with temporary accommodation.

01:18 Insurers say they're dealing with a perfect storm of events as natural disasters become more intense.

01:25 We're seeing a challenge in getting builders, finding temporary accommodation for people who can't live in their homes is also a challenge.

01:33 It was inevitable that we would have some claims that didn't work perfectly.

01:38 Following the ABC's inquiries, RACV settled with Shelley.

01:42 People are urged to raise complaints with their insurer and the regulator.

01:46 .

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