Flood recovery insurance claims could take years: MP

It could take more than a year for some insurance claims to be resolved following record-breaking flooding as recovery operations step up.

Premier Chris Minns has returned to Taree to meet with volunteers, farmers and businesses affected by deadly floods around the NSW mid-north coast.

The Manning River exceeded a 1929 record during recent flooding in the town, peaking at almost 6.5 metres and bringing widespread devastation.

Mr Minns on Thursday announced former NSW Police deputy commissioner Dave Owens will commence as flood recovery co-ordinator.

"He is on the ground in Taree, ready to go, to help the community recover from these terrible floods," Mr Minns said.

Mr Owens will co-ordinate the response by agencies and community organisations and provide feedback to the government.

He has previously co-ordinated recovery efforts following other disasters.

"He knows how to get things done, and he'll be a strong advocate for the community here," Recovery Minister Janelle Saffin said.

About 3500 people remained isolated on Wednesday, with more than 1000 buildings deemed uninhabitable following the floods, which killed five people.

The floods have been declared a "catastrophe" by the Insurance Council of Australia.

The declaration escalates the industry response, meaning claims are given priority and triaged to provide urgent assistance to the worst-impacted property owners.

"It is confronting to see the extent of the damage across the region and it is clear the recovery is going to take some time and that means support must be ongoing," the council's chief executive Andrew Hall said.

More than 6000 insurance claims have been filed, about a quarter of them coming from the MidCoast council area, based in Taree.

Insurers should be keeping track of claims that take a long time to resolve, federal Assistant Treasurer Daniel Mulino said.

"Generally, 90 to 95 per cent of claims are resolved within a year or so, but that still leaves a very large number of claims hanging on," he told ABC Radio National on Thursday.

"Hundreds, and sometimes thousands of people with still unresolved claims a year, or even two years after the disaster."

Dr Mulino said the government is working with insurers to strengthen the industry code as it implements recommendations from a 2024 federal parliamentary inquiry he chaired.