Financial counsellors gave evidence at one of the first public hearings held to investigate the devastating impacts of the 2022 NSW and Queensland floods.

At least 24 people died and more than 500,000 were affected by the catastrophic event, which remains the most expensive disaster in Australia’s history and had an estimated insurance bill of $6bn.

Vicki Staff from Financial Counsellors Australia said flood survivors faced “long, emotionally draining” battles when trying to submit insurance claims, facing long delays and hostile communication.

“You may have noted that all of our clients in our case studies were older Australians,” she told federal MPs.

“Older Australians are more likely to struggle with the online claims handling process, they are more likely to have a fixed income which makes them less financially resilient, and they are more likely to have health or mobility issues.

“Age is also a really easy vulnerability for insurers to recognise.”

According to Ms Staff, one of the most widespread issues flood victims faced in the wake of the disaster were long delays in having their waterlogged homes stripped out.

She spoke of one woman who reported losing at least $50,000 worth of undamaged belongings due to poor communication from her insurer.

Another client, a single mother living in Gympie, was told by an insurance company she would not be allowed to access her house for four months while it was being cleaned out.

“For four months she did not go into the house and it was not stripped out – and actually while I stood there talking to her she mentioned that the clothes she was wearing were hand-me-downs because she had not been able to salvage even basic clothes,” Ms Staff said.

About 75 per cent of flood-affected people suffer from poor mental health and almost 90 per cent struggle to pay for basic necessities, the inquiry heard.

Lylia Martion, from Anglicare Victoria, told MPs one of her clients, an older man from Victoria, described feeling “gaslit” and “ambushed” by the insurers and builders involved in his claim.

“He consistently felt pressured to accept lower quality materials in his home at the drop of the hat – and accepted that because he was well aware that time was not on his side and he wanted to go home,” Ms Martion told the inquiry.

“It has been very difficult for him to be continuing to be what he describes as being misled and lied to by the insurance company he’s been with for over 50 years.”

Independent MP Andrew Gee, whose electorate was affected by the NSW floods, said the inquiry’s submissions were “a damning indictment of the industry and industry practices”.

Major insurance companies are due to give evidence next week.