Milking the Cows

Hi Scott,

My uncle is a dairy farmer who lost everything in the Gippsland bushfires. But he still has to milk the cows every day, so he can’t get away from it. Even though there’s the $75k fund for him, we’re concerned it’s not going to last long. I also worry about his mental health too. What can we do for him?

Casey

Hi Casey

(I can picture my editor now saying “this isn’t finance!” And you know what? He’s right. And you know what else? I don’t care.) Look, I know just how tough fire-affected farmers have it right now.

Generally it’s the farmer’s wife who comes in to see me, and they often say the same thing: that their husband hasn’t left the farm since the night of the fires — they can’t as they have too much work to do.

As one cocky told me: “the cows won’t milk themselves.”

Can you imagine how hard it would be to work and live in a place that’s been decimated by fires?

Well, one idea, which came from the local community, is to get students from the agricultural colleges to do a few days work placement at these farms. The students could take over the farm so the farmers could get away with their family somewhere that’s not black and burnt, for some much-needed respite.

So, Casey, it may be time for you to take the udders by the hand and help out your uncle!

Scott

Extinguishing Financial Fires

Hi Scott,

My mother’s home in Nymboida (northern NSW) was tragically lost in the bushfires that ravaged the community last weekend. My mother has spent the last 30 years building a beautiful home yet, within hours of evacuation, the entire place was wiped out. We contacted NRMA for a house and contents claim, only for them to insist we itemise everything — yet it’s all gone! In your book you mention you were able to demand payment in full after your house burned down. Is there a script that we can use to achieve the same?

Mel

Hi Mel,

Give your mum a hug for me.

Your mum has just gone through a significant, stressful life event — so understandably she may not be in the right frame of mind to make far-reaching financial decisions, let alone battle an insurance company.

There are two things to consider: reimbursement for your contents, and managing the rebuild process.

While I haven’t read your mum’s policy, most insurers have what’s known as a ‘sum insured’ value. Once they’ve established her home has been destroyed, they should pay that figure out as a lump sum for contents almost immediately. Don’t let them play games with your mum: go back to NRMA and tell them that it’s far too traumatic to make her itemise everything she’s lost. Tell them to pay up the contents insurance pronto (and if they give you any stick, write back to me).

But when it comes to getting a lump sum for her rebuild, I’d be wary. Yes, I did it, but I was confident of managing the entire rebuild myself (and investing the proceeds in the meantime). However, if the onus of the rebuild is on your mum (rather than having the insurer manage it), that could be pretty stressful … and that’s the last thing she needs right now. Let the insurer deal with it.

Scott