The ongoing NSW flood crisis is now Australia's most expensive natural disaster with insurers estimating $5.5 billion in claims have been lodged this year.
Forbes mayor Phyllis Miller says some people with existing policies have received letters saying they will not be renewed, while others say insurers refused to cover them to begin with.
Insurance Council of Australia (ICA) chief executive Andrew Hall says "by and large insurers are sticking by their customers" but insists changes are required in towns like Forbes where eight homes were completely inundated and 140 were damaged.
