When last month's floods severely damaged Lola Fletcher's home in Barrack Heights, she was pushed out and left to find temporary accommodation while her unit was repaired.
The 83-year-old's carpet and furniture was damaged and she said the stench inside the unit, along with her fragile health, had made living there impossible.
Since the Illawarra Mercury reported her predicament on April 20, Mrs Fletcher said she had received a positive response from her body corporate's insurer, QBE, about her claim, which she had lodged twice since the floods more than four weeks ago.
Mrs Fletcher said the insurance company had offered to cover her for temporary accommodation until repairs at her unit were complete.
"The representative from QBE gave me a personal ring from the office in Sydney," she said.
"He assured me I would have safe accommodation, which was very good.
"They accepted my doctor's certificate, which is what they should have done in the first place."
She had previously told the Mercury the flooded unit was "in a disgusting state" and "not fit for a human".
She is now looking for a suitable place to stay until her flooring is replaced and repair works complete.