During a recent press conference, Federal Lindsay MP David Bradbury said: "This is a timely reminder of the significance of insurance", particularly for residents in flood-risk areas.

"Make sure you have a good look at your insurance policies," he said.

Jon Stack, principal and managing director of Action Insurance Brokers, which has an office in Penrith, said flood insurance was not a compulsory cover for home and contents and building insurance as well as business and commercial insurance.

"People who live in a designated flood zone need to be aware that in most cases, they will not have insurance for damage or loss caused by a flood," Mr Stack said.

"Insurance companies can only offer the cover that their 're-insurer' allows them to.

"If they are allowed to offer flood cover, then yes, with good flood mapping, it becomes a risk that can be calculated and hence, priced into the premium.

"However, if a property is definitely in a flood zone, then insurers may still not want to give the cover."

Also, after the Queensland floods, Mr Stack said premiums would increase for home and contents by about eight to 10 per cent.

So what should residents look for?

Mr Stack said policy holders needed to look for two things — whether the policy specifically says they have flood cover or alternatively, the policy will cover all risks except those they exclude and if flood is not excluded, it's covered.

When asked how residents would know whether they needed cover or not, Mr Stack said they should refer to their title deeds, their 149 certificate or visit the council.

Colin Toan, director of National Corporate Broking in Penrith, said by law, insurance companies had to issue a Product Disclosure statement to each client, which outlines what they’re covered for.

‘‘They’re all in plain English,’’ he said.

Mr Toan said it was only in about the past four years that companies started to offer flood cover and said about 70 per cent of insurers in NSW excluded it.