Koolewong resident wins stand-off with insurer Budget Direct over bushfire claim
Grant Harridge and Gordon Plath (right) were displaced by the Koolewong bushfire. (ABC Central Coast: Sarah Forster)
In short:
Gordon Plath thought he was one of the lucky ones when his home narrowly escaped a NSW bushfire, but then he started dealing with his insurer.
He was forced to rely on charity to keep a roof over his head despite having a comprehensive home and contents policy.
Following inquiries by the ABC, Mr Plath was contacted by Budget Direct Insurance with an offer to cover his accommodation expenses.
Gordon Plath thought he was one of the lucky ones when he escaped a bushfire that swept through Koolewong on the New South Wales Central Coast last weekend — but then he found himself in a stand-off with his insurer.
Sixteen homes were destroyed in the blaze and 23 were damaged, but Mr Plath's home was left standing.
But he has been unable to stay there because authorities have deemed his neighbourhood too unsafe for residents to return.
Mr Plath contacted his insurer, Budget Direct, two days after the fire to lodge a claim for emergency accommodation and was told he would not be covered.
The bushfire came within metres of Gordon Plath's Koolewong home. (ABC Central Coast: Sarah Forster)
"[They] just kept putting me on hold ... would say, 'Oh, they're having a management meeting about it,'" he said.
"It wasn't until Thursday that they said, 'No, we're not going to cover it.'"
Insurance stand-off
Mr Plath has a comprehensive home and contents policy worth almost $4,000 a year, so he was shocked when he found himself with little cash and being forced to turn to others for help.
"I've been relying on charity ever since [the fire], which makes me feel awkward, because that should be provided to more worthy people, not people who've got what they thought [was] a comprehensive home and contents insurance policy," he said.
Mr Plath said the care shown by others had helped get him through.
"While the fire didn't overwhelm me, the community response has — that's just brought tears to my eyes, just how generous everyone has been," he said.
"I'll be forever grateful."
Sixteen houses were destroyed by a bushfire at Koolewong. (ABC News: Liam Patrick)
Mr Plath's neighbour, Grant Harridge, said police told residents to leave their homes at 12:30pm on Saturday.
The 83-year-old said his insurer contacted him within hours of the fire sweeping through.
"[NRMA] asked us how we were … right there and then they arranged for accommodation.
"It's taken so much pressure off us."
It is unclear when residents will be allowed to return to their homes. (ABC News: Liam Patrick)
Insurers warned to pay 'as soon as possible'
Premier Chris Minns has put insurers on notice.
"The Minister for Reconstruction, Janelle Saffin, has been speaking with the Insurance Council about speeding that up as quickly as we can," he said.
"We will go in to bat for any family that's struggling with an insurance company. We expect these claims to be paid as soon as possible."
Gosford MP Liesl Tesch said Mr Plath's situation was disappointing.
"Residents who are fully insured should be supported by their insurance companies rather than have to wrestle for support or solutions regarding emergency accommodation," she said.
Outcome reached
After the ABC contacted Budget Direct for a response regarding Mr Plath's situation, he received a phone call from the insurer and was advised he was entitled to a payout.
Gordon Plath was offered a payment after the ABC contacted Budget Direct to enquire about his situation. (ABC Central Coast: Sarah Forster)
"They rang me … and said, 'Look, we've reviewed it and we've decided to give you a payment of $5,000 to cover all the accommodation expenses,'" he said.
"This has gobsmacked me … totally gobsmacked me.
"Better late than never."
Budget Direct declined to be interviewed, but issued a statement saying it was "deeply sorry" for those affected by the Central Coast bushfires.
"We are providing immediate support to our policyholders who have experienced property loss or damage, as well as responding to other special needs or vulnerabilities that have arisen from this event," a spokesperson said.
"In addition, we are also helping policyholders connect with NSW government grants that also offer support for impacted residents."
Mr Plath said he was previously told he was not eligible for any accommodation payment in "this circumstance" and there was no explanation from Budget Direct as to the change of heart.
"They just said they had reconsidered the matter," he said.
"I've had quite a few sleepless nights and had quite a few angry thoughts.
"I can sleep tonight."