Insurance claim ‘scam’
Six men stole historical doors and walls, alleges owner
The insurance industry has been described as a “scam” by a northern NSW resident still waiting for a claim to be resolved more than two years after record flooding smashed the region.
The resident was one of a number of flood victims who shared their experiences during a federal parliamentary inquiry meeting in Lismore.
East Lismore resident Kate Olivieri alleged to the committee tradesmen brought in by her insurer entered her home and destroyed it two months after the floods.
“My husband and I have lost our house twice in two floods, 2017 and 2022,” she said.
“We had appropriate insurance, it was expensive and we didn’t pay for other things because we had insurance. We had it but we’re worse off.
“We’ve always had and paid for flood insurance as part of our mortgage. Yet insurance appointed builders broke in and destroyed our house to the ceiling.
“My husband caught six men stealing our late 1800s historical doors and walls. When he confronted them and asked for ID, they didn’t give him any.
“They told him ‘Mate it’s an insurance job – take it up with your insurer’.”
Ms Olivieri told the committee the couple changed their locks, but the men returned and pulled out more items, leaving little more than studs and bits of broken heritage timber.
“They pulled out the kitchen and the bathroom, took our stained glass double French doors – it’s unlivable,” she told the committee.
“We reported them to the police and were told it was a civil matter and they wouldn’t get involved.”
Ms Olivieri said they wanted to work with their insurer in “good faith”, but ended up complaining to the Australian Financial Complaints Authority.
“This helped us get to a resolution – but the resolution did not put our house back,” she said.
“We’ve paid for a service to protect our home and instead it was damaged by people who were employed to protect it.”
Parliamentary committee chair Dr Daniel Mulino described submissions made at the meeting, part of a federal inquiry into insurers’ responses to 2022 floods claims, as “very concerning”.
“There are a number of claims still to be resolved more than two years after the fact. We heard of a number of people who felt like they were being bounced around for month after month,” he said.
“We even heard about people who felt that without their consent their property is being entered into and valuable parts of their house were being taken away.
“So these are all things that we need to strengthen regulatory arrangements around.”
Dr Mulino said it was critical to evaluate the insurance industry’s performance after one of the biggest natural disaster in the nation’s history.
He said regulations could “tighten up” to prevent claims lagging and incidents of customers having their valuables stolen.
The committee is due to report on the issue by September 30 and members of the public have been called to make submissions.
We’ve always had and paid for flood insurance as part of our mortgage. Yet insurance appointed builders broke in and destroyed our house to the ceiling. Kate Olivieri
East Lismore resident