Brian and Tracy Haimes waited 17 months to settle a claim with their insurer after the floods at Rochester in October 2022.Predatory lowball cash settlements from insurers to victims of flood damage are a serious issue, with the peak body for financial counsellors revealing underquoting is rife.
She said the data confirmed what the FCA believes is a widespread practice of inadequate cash settlements. It showed that financial counsellors were able to negotiate an additional $83,182 per client, on average, across the 40 cases, or $3.3 million in total."The thing that keeps me awake at night is how many people are missing out on fair and adequate settlements," she said. "Who don't know help is out there.
More than 400 megalitres of water went through their property, destroying furniture and damaging the structure. The house was unlivable.Brian said he was about to accept the $167,000 offer but a friend advised him it wouldn't cover the cost of the damage. Almost two years on, most of the claims have been closed, as they should, but thousands are still outstanding, and behind those numbers are people suffering.The inquiry, chaired by Victorian Labor MP Daniel Mulino, was deluged with testimony and submissions outlining some disturbing stories of customers battling insurers at one of the worst times in their lives.
Stock told ABC News that insurance companies worked for their shareholders, not their customers. "They will use every resource and dispute everything on the way to minimise payments to consumers," he said. It said when claims took longer than a year to resolve, it caused a myriad of extra problems including temporary accommodation as most additional benefit inclusions only covered the insured for 12 months.