Alted Printing is one of several businesses in Sydney’s south west which were told they would only be covered for centimetres of damage after the super storm ripped through New South Wales earlier this month.
Alted Printing owner Ted Rixon and his family have been locked in a battle with their insurer CGU since the storm inundated shops on Argyle Street on June 5 causing hundreds of thousands of dollars’ worth of damage to the business.
Insurance Australia Group, which includes CGU and NRMA, initially ruled that the inundation to the shops was caused by flooding from the nearby Stonequarry Creek and and by stormwater, with Alted only insured for stormwater.
The business did not have flood cover and Rixon was informed by CGU he would only be covered for a maximum of 10 centimetres off the floor as the extra 1.2 metres of water was determined to be flood water.
Rixon’s daughter Melanie Sell, who also works part time at the business told Australian Printer the business was initially told it would only receive compensation for one Fuji Xerox digital printer, the flooring and three computers.
Sell says, “We were told some machines would be covered, but the moisture from the water corroded all the other machinery we have, the guillotine, collator, business card cutter, laminator, book binder and also our stock.”
Three weeks on, Sell received an email this morning from CGU with confirmation that all the machinery damaged by moisture would be covered, but Sell claims the business should have received full compensation from the start.
“I just do not understand the logic, the area had 400 millimetres of rainfall in a short amount of time but we were still only being covered for 10 millimetres, you are just left confused,” she says.
“We are a lot happier now after this decision then compared to last week but we are still in negotiations with CGU over a lot of things.”
Since the storm, Alted’s Printing shop has been closed and the business is now operating out of premises owned by a friend of Rixon. Sell says since reaching a positive result, the business is now focused on pushing out its outstanding orders.
“This week I feel like the weight has been lifted off and I can see the dull light at the end of the tunnel. I have not been able to focus on current jobs because we have been trying to fight the insurance company for an answer,” she says. “My father is 65 years old, there was no way he could shut the doors and start again.”
Sell says the business has since switched insurance brokers.
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.
Sign up to the Sprinter newsletter