Insurers have defended a move to approve some flood claims in the northern Victoria town of Charlton, saying each is being treated on a case-by-case basis.

Residents last week hit out at Elders Insurance and AAMI for paying some claims but not those on neighbouring properties.

They have threatened to join together in a class action, saying the damage was caused not by flood but by storm.

Residents in Carisbrook, 119km from Charlton, have also received payment for their flood claims.

Media reports last week revealed CGU had paid out some of the Charlton claims, despite not offering automatic flood cover.

AAMI told insuranceNEWS.com.au it’s possible CGU had made ex-gratia payments, because no hydrology reports for the region were available.

But CGU has denied making such payments “for this or any other event”.

Spokesman Sean Sampson told insuranceNEWS.com.au that claims have been paid where assessments have determined damage was caused by storm water.

But any claim considered to be caused by flood hasn’t been paid.

“We assess claims on a case-by-case basis and every claim is different,” Mr Sampson said.

“The information we use to assess a claim may include eyewitness accounts, assessors and hydrology reports as well as using data available from the Bureau of Meteorology and topographical maps.”

AAMI also says it’s not “uncommon” for insurance companies to differ on the outcomes of claims in any given street, as policies are different from one company to the next.

A spokesman says AAMI has only paid damage claims which are determined to be caused by storm damage and rainwater run-off.

“We assessed each of the claims individually and commissioned independent hydrology reports for each affected property,” he said. “But unfortunately, these show that the damage was due to riverine flood.

“We do provide each affected customer with full details of the outcome and advise them of their appeal options.”

Elders Insurance says its claims process is always comprehensive.

“We have taken all available information into account when making our decisions, and remain open to considering any new information or evidence,” a spokesman said.