Couple Lose Home - But No Payout
Sun Herald
Sunday August 30, 1998
TONY Hughes hugged his wife yesterday as he told how a retaining wall, pushed by raging floodwaters, devastated their home.
The catastrophe has left the couple homeless, with an estimated $90,000 repair bill and the NRMA refusing to pay out on their insurance policy.
The force of the collision knocked the house, at Spencer in the Hawkesbury Basin, off its foundations and destroyed a bedroom, bathroom and kitchen.
The impact fractured water pipes under the floorboards and flooded the house with 20,000 litres of tank water.
The Hughes had thought their world had fallen apart when a financial crisis claimed their first home at Narromine four years ago.
They made a fresh start a year ago in their Spencer home which boasts views of the Hawkesbury River - only to be raided by thieves.
Then came the flood.
David Beneke, a senior structural engineer with the Sydney-based firm of McMillan, Britton and Kell, confirmed the house was not fit to live in.
NRMA Insurance spokesman Mark Lever said his company would like to help the Hugheses.
"But what has happened to them, like thousands of others caught up in the floods around the State, falls into a complex area of insurance," Mr Lever said.
"By definition, the phrase `Act of God' excludes claims related to flooding. If we were to introduce a flood policy, it would cost our customers between $1,700 and $2,000 a year to ensure they are properly covered for flood damage."
When the flood came, the couple escaped with their pets and their lives.
"The only thing that is holding up the house is two internal brick walls," said Mrs Hughes.
"The insurance company says the damage to the house is an Act of God brought on by flood slippage, which isn't covered by the policy.
"But our argument with the NRMA is based on an independent structural engineering report that states the damage to the house was done when the retaining wall failed."
Mr Lever said that if the Hughes passed on a copy of their report to NRMA specialist engineers, his company would reassess the claim.
© 1998 Sun Herald
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