Insurance companies say processing claims will take time despite criticism from Eugowra residents who feel "traumatised" waiting.
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It's been two months since the unprecedented flood event that left the town of 800 people devastated.
Two residents died and almost every building was affected as the torrent ripped houses from their foundations.
Insurance Australia Group, who own NRMA Insurance, confirmed they had received a total of 1688 claims across the Central West since November's floods, 215 of which were from Eugowra alone.
NRMA Insurance Executive General Manager Direct Claims Luke Gallagher said they had a range of support measures in place, including accommodation, emergency financial assistance and a mobile claims centre.
But for Eugowra resident Margaret South, who is insured with Allianz Australia, the waiting is the hardest part.
"We can't live here because there are no walls left and we can't sort it out until we know whether or not we'll get insurance," she explained.
"We are living in a caravan outside the house. We were lucky my house didn't move. It's not ideal but it's something we just have to go through.
"The biggest problem we have at the moment is we are still waiting on our insurance company to say 'yay or nay' to us. They haven't said anything to us and we've been waiting.
"A lot of people here have been told no, so we're just waiting."
That sentiment was shared by fellow resident Kay Jones who told Australian Community Media that the situation was affecting so many in the town.
"It's unimaginable, and the insurance situation is making the town very, very edgy," she said.
"It is all a matter of waiting: even though we didn't have flood insurance, we put in a claim, we had an assessor and a hydrologist come."
Allianz said they had a dedicated recovery team on the ground and that claims were taking time to process.
"Processing commences on all claims when they are received, and some fewer complex claims have already been finalised, for example written-off motor vehicles and contents claims where the policy responds," a statement read.
"For customers that have building damage caused by flooding but have chosen not to include flood cover in their policy, we are obtaining hydrology reports to support our decision making, which can take some time."
Many in Eugowra were unable to afford flood insurance although Ms South believes what she saw was actually a natural disaster, not just a flood.
"It's terrible that companies can do that and not think about what happened to us here," she continued.
"I believe it was a natural disaster. I stood here and watched a tsunami come at me. It was something I'd never seen in my life and never want to see again.
"It's making it three-times worse, it's traumatising everyone. I've got neighbours here who have lived here all their life, are members of NRMA for 62 years, and within two weeks they were told there was no help for them."
In response to questions, Allianz told ACM all insurance companies had determined the event as a flood.
"The definition of flood for insurance purposes is contained in the Commonwealth Insurance Contracts Act and it is mandatory that insurers use this definition when offering flood cover," Allianz said.
"Allianz has determined that the Eugowra event was a flood as defined under insurance law based on the advice of professional hydrology experts.
"Allianz understands that all insurers have made the same determination in relation to this event.
"Property insurance policies generally cover 'defined' natural events, for example, fire, storm, earthquake and flood (if chosen by the policyholder where it is optional). The concept of a 'natural disaster' is not a defined event under home insurance policies."
Mr Gallagher meanwhile said NRMA would keep working with customers even if they had no flood cover.
"Insurance provides cover for a range of severe weather events and natural disasters such as floods, severe storms, bushfires and cyclones," he said.
"Unfortunately, some customers may have chosen to opt-out of their flood, rainwater and storm surge cover which means they may not be covered for the damage suffered during the floods.
"In the situation where a customer has opted-out of their flood, rainwater runoff or storm surge cover, we will also assess whether they have suffered storm and rainwater damage or ingress through their roof or windows which will be covered.
"We continue to work with customers to discuss the outcome of their claims and how we can provide support based on their individual circumstances.
"For some customers, we are in the process of finalising the scope-of-work assessments which outline the repairs required.
"We prefer to complete repairs and offer a lifetime guarantee, however, customers also have the option to request a cash settlement under their claim, which we will process immediately on their request."
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