Floodwaters have returned to the NSW mid-north coast, seven months after the last major flood – and underinsurance is still seen as a major headache for the affected communities.

A survey by the Coffs Coast Recovery Committee has revealed that 25% of the residents forced from their homes by floods in March have not returned and 10% will never be able to.

Today emergency services are mopping up in towns around Kempsey and Coffs Harbour after up to 400mm of rain fell early last week. Almost 5000 people were cut off in Bellingen, Bowraville and smaller communities.

The survey conducted following the March floods has succeeded in its aim of identifying residents who have “fallen through the gaps” in the insurance and relief system, according to Bellingen Shire Mayor Mark Troy.

He says some people are “still struggling” with insurance companies, although the vast majority were insured and had their claims accepted.

Among the most common comments received, residents said their insured amount fell short. Costs for building repairs were up to $250,000, and reached $150,000 for contents replacement. Residents also complained about premium increases.

State MP for Coffs Harbour Andrew Fraser says some insurance customers are “paying the price” for living in areas declared flood-prone by Coffs Harbour City Council. He says they are paying higher premiums or are being denied cover altogether.

“In one case, a fellow’s premium has increased 100% from $500 to $1000 because he’s purportedly in a flood-prone area, but he’s living on a hill,” he told insuranceNEWS.com.au. “It’s within the red line drawn by council.”

Mr Fraser says more needs to be done by all three levels of government to improve drainage systems. He says there is lingering resentment among residents that NRMA Insurance declared a storm event while IAG sister company CGU is examining each claim to determine if damage was caused by flood or storm.