A Wye River resident who lost a home in the December fires has had her insurance claim denied.

Sherryl Smith has been insured with AAMI for 25 years, but an online glitch meant her initial October payment didn’t go through.

Concerned about fires near her area, Ms Smith checked her cover in December, only to discover the error.

She made a successful payment the day before her house burnt down.

But while the policy says it is effective from midnight the night that you take it out, AAMI says Ms Smith can’t claim in the first three days.

She told Neil Mitchell she is disappointed to be left high and dry.

‘This wasn’t a holiday house, this was my home,’ Ms Smith said.

‘I ended up with two pairs of shorts, two t-shirts, and my dog.

‘They’re very good at taking your money year after year, but when you need them, they’re not there.’

Click play to hear Sherryl’s story