Mr THOMAS GEORGE (Lismore) [6.30 p.m.]: I speak out of frustration and concern for residents who have their homes insured. In November 2007 Lismore experienced a major hailstorm and in January 2008 a flood. Mr and Mrs Felton, an elderly couple who live at 29 Stratheden Street, Kyogle, have had their house insured with CommInsure for some time. When water entered the Felton's house during these events Mrs Felton made a claim. An assessor arrived at the house, looked at the roof and said, " The house is too old. Sorry, there won't be any claim paid." I quote from a letter that Mr and Mrs Felton received from CommInsure:

Your policy is due for renewal on 27 September 2009.

From information obtained during a recent claim, we have been informed that the following aspect/s of your property are in poor condition or require urgent repairs/maintenance:

. MCS provided a report which stated the water entered your home through holes in the iron roof from where old nails were protruding or completely missing. Your claim was declined as the damage was a result of lack of maintenance to the roof.

For cover to continue we require these issues to be rectified.

If you have repaired the above problem/s, or you need to discuss an appropriate time frame for the works to be completed, please contact us as soon as possible on [a 1300 number] between 8 am and 8 pm Sydney time.

We may need to request written and/or photographic evidence of the repairs in order for your cover to continue, however this will be discussed with you at the time.

If we do not hear from you, your policy will expire on 27 September 2009 at 4 pm, and no renewal offer will be sent to you.

Some people are not in a situation to be able to get up and check their roof. Every year people renew their insurance polices and every year properties age. A lot of people only realise they have a problem when they notice a leak or water enters the property. The Feltons do not have the means to climb onto their roof once a year to check and they did not realise they had a responsibility to do so. CommInsure has continued to accept insurance payments from the Feltons. To me, if it is good enough for CommInsure to accept those payments then it is accepting some sort of liability. I do acknowledge, however, that there are a number of insurance companies operating in New South Wales and not every insurance company has this approach.

When Lismore experienced a major hailstorm a number of people got into the same sort of trouble and did not know their houses had not been properly maintained as far as their insurance company was concerned. I should point out that Mr Felton is very sick and Mrs Felton is now his carer. Mrs Felton cannot afford to do the work required by the insurance company and her insurance will be cancelled. Where is Mrs Felton to go on 27 September? If she is to approach another insurance company the first thing she will be asked will be is, "Have you been knocked back by a previous insurer?" She will have to say yes and will not be able to reinsure her house. I ask CommInsure to review its decision and hopefully assist Mr and Mrs Felton in this matter.