Zurich-owned Illinois Farmers Insurance Co is suing 12 councils in Chicago and the state of Illinois, claiming they failed to respond to threats from climate change.

In one of the first legal actions related to losses from global warming, the US insurer says the town and city authorities did not act to prevent the foreseeable risk of flooding.

It says the councils knew drainage systems could not deal with increased rainfall resulting from climate change.

Heavy storms in April caused $US400 million ($432.68 million) of insurance losses across several states including Illinois, according to Impact Forecasting.

Widespread flooding in April 2013 led to a state of emergency in Illinois and left much of the Chicago area under water.