An application to have an earthquake and series tremors that rocked the Upper Hunter declared as a natural disaster has been rejected.
Muswellbrook Council was advised on Tuesday that "after careful consideration" the NSW Reconstruction Authority would not issue a Natural Disaster Declaration as it did not meet the criteria of "eligible disaster" as defined in the Disaster Recovery Funding Arrangements.
The 4.8 magnitude quake on August 24 occurred 10 kilometres beneath the earth's surface. It was followed by at least two aftershocks within 15 minutes, with magnitudes of 3.3 and 2.9.
Thousands of people across the region, and as far away as Wollongong, Dubbo and Tamworth, felt the earth rumble beneath them or buildings shake around them.
Schools and courthouses were evacuated, businesses closed and more than 2500 people were without power in Muswellbrook.
A number of buildings sustained minor damage.
Seismic activity continued to be felt in the area for more than a week.
The Reconstruction Authority's ruling drew the ire of the town's newly elected council, which expressed its disappointment at an extraordinary council meeting.
Councillors noted there was no doubt that damage being assessed by insurers had been caused by the earthquake and the tremors that followed.
"We are extremely disappointed in this decision and share the frustration of affected residents who are struggling with insurance claims in the aftermath of the earthquakes. Council applied for the National Disaster Declaration believing that it would allow locals to tap into support and make it easier to claim for damages," Mayor Jeff Drayton said.
"Instead, many residents, who pay their premiums in good faith, have had their insurance claims rejected outright or classified as existing damage. It seems incredible that not one insurance claim in the wake of the earthquakes has been successful."
Cr Drayton said the council would seek a meeting with Emergency Services Jihad Dib.
"We reject the claim from the NSW Reconstruction Authority that the event did not meet, as their letter stated, "eligible disaster" criteria and are meeting with the Minister for Emergency Services, Jihad Dib, about this, and the responsibility insurance companies have to their clients," he said.
"There is a lot of damage to houses. How big does a disaster have to be?"
Upper Hunter MP Dave Layzell said he was astonished the council's application had been rejected.
"If that doesn't classify as a natural disaster I don't know what does," he said.
"It may be that the public infrastructure doesn't meet the threshold but certainly residents and businesses hit the threshold. It (the rejection) doesn't stand to reason."
Geoscience Australia has deployed three earthquake monitoring systems in and around Muswelbrook in the Upper Hunter following the seismic activity.
It is hoped the systems will provide an insight into the recent tremors and improve the accuracy of the institution's data.
