Disaster strikes: Flood insurance out of reach for many on the Mid North Coast

More than 5,000 insurance claims have already been registered following the devastating floods on the Mid North Coast, with thousands of residents looking for financial assistance – either for their business or homes.

But for many still putting together the pieces of their property, flood insurance was never an option: either because of exorbitant quotes from insurance agencies or just being outright refused coverage. 

Conrad Tamblyn, the owner of Netherby Guesthouse on the Macleay River bank in Kempsey, has lived in the region since he was a child. He told the Mid North Coaster that while he had experienced flooding before, this particular event was unlike the others.

Flood insurance not an option

Tamblyn’s business was directly impacted by the recent flood, as well as the attached cafe on the property, The Pantry, owned by Daniel Berechree. Both businesses did not have flood insurance.

Due to the location, Tamblyn said commercial insurance was difficult to find and flood insurance wasn’t possible.

“Flood insurance wasn’t an option,” he said. “My insurer said no.”

“I think if I fished around hard enough and paid a big enough premium, then I probably could have got insurance, but you'd be looking at $40,000 or $50,000 a year which is massive.”

Tamblyn said it would be cheaper to do his own earthworks to build the levee bank up, “which is what we're probably looking at next”.

As for business insurance, there is no flood relief provided.

“In terms of commercial business, we've got large monthly repayments we need to make to a lending institution. They don't compromise in terms of weather or floods, they just expect those payments to be made each month regardless,” Tamblyn said.

Tamblyn and cafe owner Berechree took over their respective businesses last year and have been impacted by regular wet weather since they got the keys. 

Weathering the chaos of recent Tropical Cyclone Alfred, this flooding might be the nail in the coffin.

“Just about kicked us in the guts”

“We've had a pretty rough trot this year, particularly with the weather in terms of impacting on our trade, but then the flood on top, it's just about kicked us in the guts,” Tamblyn said.

“We're really questioning at the moment how we're going to move forward and whether we can actually continue as a business or not.

“I guess with this hit, we just got to work out whether we can take it or not, financially.” 

Tamblyn said a lot of business people in Kempsey Shire are “really hurting” due to the significant expenses involved in rebuilding and the cost of lost stock and trade. 

Forced to close doors

Without government financial assistance, Tamblyn is concerned a number of businesses will be forced to close their doors.

“We've got to find other ways to mitigate or share the risk between places like Kempsey that are flood prone and places along the Mid North Coast.

“There'll be a lack of services in our rural towns that we're crying out for.”

Tara Howard owns a business on Smith Street in Kempsey’s CBD which was evacuated and closed down after it was inundated with flood water. She had only relocated to the new shopfront a month earlier.

But Howard said she was one of the lucky ones.

“We had water enter the front and back of the store, only by an inch,” Howard said.

“We have been able to salvage the carpet and will only have costs associated with having it re-laid and cleaned. We were so lucky.”

Last year, Howard’s insurer removed flood cover from her policy and they no longer offer it.

Government flood assistance packages for businesses are “not far away”

This week, during a visit to Taree, NSW Premier Chris Minns recognised the need for assistance packages, especially for primary producers and small businesses.

“We know for a lot of these established businesses, if they do not get the crucial help and support in the next week or month or six months, then they may close their doors and there is virtually no chance of a similar business opening in their stead because a lot of these farms and family-run businesses have been at it for generations and they just cannot start from scratch,” he said.

The Premier said assistance packages for Mid North Coast businesses and producers affected by the floods are “not far away”.

“The government announced, in conjunction with the commonwealth government, a range of assistance, and I want to make it clear we’re not done yet.

“I want to make sure it is right and it helps the community, so we will announce that imminently.” 

What Mid North Coaster readers have to say about extreme weather insurance

We asked subscribers of the Mid North Coaster newsletter for their thoughts on flood insurance. Here’s some of the responses, edited for clarity.

Got something to say? Email [email protected]

Rosemary Lee:

Watching the devastation unfold across northern Australia, my heart breaks not just for those who’ve lost homes or livelihoods, but for the countless others who are left carrying the emotional burden of watching loved ones suffer.

What makes it harder to bear is knowing that so many are uninsured—not by choice, but because insurance has become unaffordable or unavailable in high-risk areas. 

In the face of increasingly frequent natural disasters, this is not just a personal tragedy—it’s a policy failure.

Australia has had a publicly-owned insurer in the past. Private insurers still existed, but the publicly-owned insurer provided a safety net. Today, we need that safety net more than ever.

If governments can afford to hand billions to ineffective programs, subsidise fossil fuel exports, and maintain generous political pensions, they can certainly afford to protect the people they were elected to serve.

This is not a radical idea—it’s a practical one. Reinstating public insurance would allow primary producers to rebuild, protect local ownership of our land, and ensure communities bounce back instead of going under.

Australia has solved big problems before. What we’re lacking now is the political will—and the public pressure to make it happen. 

We must raise our voices and make this a core election issue. 

If we can’t slow climate change fast enough, the least our governments can do is shield us from its financial fallout.

Graeme Evans:

Governments could become an insurer of the areas deemed to be most at risk. As it is, governments fork out billions in disaster relief. I suggest classifying these flood prone areas as government insured and offer insurance set at $1000 a year which most could afford.

In return, the government rebuilds homes and incorporates flood mitigation measures, including offering relocation funding. 

For dairy farmers, construct massive raised mounds in some of their paddocks so cattle have somewhere to go. 

Flood victims need more than $1000 one off payments. Some people have lost all their shoes and clothes. Create a disaster pension of at least $500 a week as well as an initial grant (which should be more than $1000).  

Disaster pensions should entitle you to free medical treatment, free taxis and public transport etc. 

We can afford nuclear submarines so this shouldn’t be a money problem. Add a disaster levy to all fossil fuel companies.