The Insurance Council of Australia has warned the New South Wales flood crisis has been the costliest natural disaster on record.
About $5.5 billion in insurance claims have been lodged across the state since the flood crisis began in February.
Andrew Hall from the Insurance Council of Australia has warned that many of the towns impacted by floods in the past few months have become uninsurable.
He said many insurers have advised customers their policies would not be renewed.
"A town that goes through so many floods is simply unaffordable when it comes to a traditional insurance product," he said.
"Instead of putting the millions of dollars into the clean-up, why can't we build stronger ... higher levee walls.
"We can't be moving homes out of harm's way, because even if people can access an insurance product, if a floodwater goes through their property it will destroy everything they own."
NSW Premier Dominic Perrottet said the government would support flood-affected communities rebuild, despite concern that some areas have become ineligible for insurance.
Although he said homes should not be built on floodplains where there is a high risk.
"What we're committed to is not making the same mistakes of the past," Mr Perrottet said.
"The prime minister through National Cabinet, and I will be doing some work from a national level [on] how we can make sure we build back in a way and continue to develop in a way that doesn't put life and property at risk."
Relief for business owners, not-for-profits
Meanwhile, Prime Minister Anthony Albanese has announced $50,000 in grants for small businesses and not-for-profits impacted by the New South Wales floods during a visit to the devastated town of Eugowra.
Up to $25,000 will be fast-tracked, while the remaining money will be made available once documentation is provided.
Eugowra was hit by what has been described as a "tsunami'"of water last week, with one in three local residents rescued by air or water.
Many homes have been deemed uninhabitable.
"It's a town that's been devastated, but it's a town that's resilient," Mr Albanese said.
"It's quite inspirational seeing the courage and resilience of this local community."
The Lachlan River has also been a major focus for response and recovery teams.
The river has dropped below major levels in Forbes, where hundreds of homes and businesses were affected, and record flooding is thought to have peaked and Condobolin.
'Extra' resources sourced for road repairs
This comes as an extra 200 workers from across the state will be moved to the central west to begin repairs on the region's flood-ravaged roads.
Speaking in Dubbo on Tuesday, Minister for Regional Transport and Roads Sam Farraway said he was working directly with local councils to keep regional NSW moving.
"I've driven the roads, I've had the punctured tyres myself last week, I get it," he said.
"What is important is that we have extra plant and machinery arriving in the region next week, and we have crews and contractors coming from across the state from areas that don't require those resources right now."
Emergency personnel face 'biggest' event
State Emergency Service (SES) commissioner Carlene York said the NSW floods was the biggest event the emergency service had confronted, with the impacts expected to be ongoing for months.
"If we don't have any more rain it will be flooding well past Christmas," she said.
"We're planning our resourcing out until February as the water runs through our river systems."
Ms York said while international assistance from New Zealand and Singapore had been useful, more resources, such as from America and Canada, may be deployed down the track.
"The benefit of those [personnel] is that they are very skilled and give our members a break," she said.
"We are watching what the forecast is doing to see whether or not we need those [extra] resources."
Floodwaters could isolate community for weeks
Hundreds of people in the southern Riverina have weighed up whether to leave their homes today, with fears that unprecedented floodwaters could isolate the small NSW town of Moulamein for weeks.
The SES asked all residents of Moulamein to evacuate, via escort, by 2pm this afternoon due to rising levels in the Billabong Creek and Edward River.
Moulamein IGA owner Cassie Jackson, who decided not to evacuate, said the prospect of being cut off was scary.
"We just have to take each day as it comes," she said.
Ms Jackson said she planned to keep operating during this time.
"We've been able to find ways around getting everything here at this stage and we hope to keep doing that.
"If it comes to [having to helicopter produce] in then we'll go to that, but we hope we don't have to get to that."
There is an emergency warning in place for Moulamein and surrounds.
The SES has advised people to seek shelter in a sturdy, raised structure that can be safely accessed, due to widespread dangerous major flooding.
