NSW floods: Insurers won’t renew flood cover in towns such as Forbes, Molong, Cabonne Council

Insurance companies dramatically DITCH their customers in the middle of the worst flooding event in 70 years

  • Insurance companies leave NSW central west homeowners without flood cover
  • Towns of Forbes, Molong have been informed their policies won’t be renewed 
  • The towns are currently facing their worst flooding in 70 years
  • Insurers have began contacting the homeowners to inform them of the news

Residents battling significant damage to their properties from the worst floods in 70 years have had their problems compounded as insurance companies desert them.

Homeowners in towns such as Forbes and Molong in NSW‘s central west are still mopping up from the widespread flood event just as they receive devastating calls from insurers.

The insurance companies are informing locals their flood protection policies will not be renewed, despite the area being flood-prone since the mid-1800s.

Instead, insurers are reassessing the properties and deeming the risk of future flooding events too high.

Insurers are informing locals their flood protection policies will not be renewed, despite the area being flood prone since the mid-1800. Instead, insurers are reassessing the properties and deeming the risk of future flooding events too high (Pictured: flood damage seen in Forbes)

Insurers are informing locals their flood protection policies will not be renewed, despite the area being flood prone since the mid-1800. Instead, insurers are reassessing the properties and deeming the risk of future flooding events too high (Pictured: flood damage seen in Forbes)

In recent weeks wild weather has wreaked havoc on large swathes of the state's central west, with towns along the Murrumbidgee and Lachlan Rivers copping near record peaks as the Wyangala dam spilled

In recent weeks wild weather has wreaked havoc on large swathes of the state’s central west, with towns along the Murrumbidgee and Lachlan Rivers copping near record peaks as the Wyangala dam spilled

In recent weeks wild weather has wreaked havoc on large swathes of the state’s central west, with towns along the Murrumbidgee and Lachlan Rivers copping near record peaks as the Wyangala dam spilled.

The river at Forbes is sitting at more than 10m, with levels at Euabalong at a 70-year high.

A Forbes resident told The Daily Telegraph they were emailed on October 31 to be told their insurer would not renew their flood cover beyond December as their property risk had been reassessed.

‘It’s very frustrating as we’ve been a loyal customer to them for years,’ the resident said.

Another resident said they have been forced to move after an insurer declined to renew any form of protection on their home.

Forbes Mayor Phyllis Miller said she felt the frustration of locals as one of her children was also denied flood cover on their home.

A Forbes resident said they were emailed on October 31 to be told their insurer would not renew their flood cover beyond December after reassessment of their property (Pictured: Locals help clean Eugowra police station after the flood event in November)

A Forbes resident said they were emailed on October 31 to be told their insurer would not renew their flood cover beyond December after reassessment of their property (Pictured: Locals help clean Eugowra police station after the flood event in November)

A damaged ambulance in the town of Eugowra where flood levels reached a 70-year high

A damaged ambulance in the town of Eugowra where flood levels reached a 70-year high

Ms Miller said the insurer would not offer flood protection for anyone in the 2871 postcode which includes Forbes, Bedgerabong, Wirrinya, Jemalong, and Warroo.

It is understood Forbes residents have been informed of the new protection changes in the area, which are irrespective of whether or not their property was deemed a flood risk.

In the town of Molong – north of Orange – Mayor Kevin Beatty said residents have been told their properties can no longer be insured.

It is expected other flood-affected towns that fall in the Cabonne Council district, such as Cudal and Canowindra, will also soon face a similar fate.

Mr Beatty said if people cannot get flood insurance the community could go under as house values plummet and would-be buyers can’t get a loan.

A spokesman for the Insurance Council of Australia spokesman said flood cover was out of financial reach for some residents as annual premiums can fall between $20,000 and $30,000.

An island of shops in the central business district at Forbes in the central west of NSW on Thursday

An island of shops in the central business district at Forbes in the central west of NSW on Thursday

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