An Insurance Council of Australia spokesman said the industry was processing several hundred claims, mostly for minor damage, from western Sydney residents.

‘‘Policyholders should read their policies closely and understand what is and is not covered,’’ the spokesman said.

‘‘Home and contents insurance is a highly competitive market and each insurer’s policies and conditions are different.’’

A Cranebrook man, who wished to remain anonymous, but who was not affected by the storms, said he was nevertheless upset by NRMA Insurance citing flood risks as justification to drastically increase premiums.

‘‘Our annual premium for home and contents jumped from approximately $900 to $4900,’’ he said. ‘‘I couldn’t believe it. The only reason they gave [was] flood data they have received.

‘‘Apparently we are in a high risk area, even though we live in a brand new development which has fantastic drainage due to the man-made lakes throughout.’’

A spokeswoman for NRMA Insurance said the company understood that some customers would be ‘‘unhappy that they’ve been identified as having a flood risk and are seeing increases in their premiums’’.

‘‘Customers can remove flood cover from their policies and reduce their premiums if they wish,’’ the spokeswoman said.

She said premiums had to reflect the risks faced by each customer and NRMA Insurance constantly reviewed such risks.

‘‘Unfortunately, for some customers flood is not a risk, it’s a certainty,’’ she said.

The spokeswoman also said that since the storms, NRMA Insurance assessors had been in the Penrith region, settling claims and organising builders to repair customers’ homes.

The insurance company AAMI’s corporate affairs manager, Reuben Aitchison, said it had received 200-300 claims from Penrith and surrounding suburbs.