Insurers have so far received 10,526 claims with an estimated insurance loss of $122 million related to extreme rain and flooding in NSW this month.

The Insurance Council of Australia (ICA) issued the update today, saying property made up 84% of the claims, which date from July 1, while 14% were for motor and the balance commercial.

The deluge struck large parts of Sydney, the Hunter Valley and mid-north coast. The ICA declared it a significant event last week – stopping short of categorising it as an insurance catastrophe, which it will only do if there is a large increase in the number or complexity of claims or the geographical spread.

Insurers say they are mostly seeing claims for property damage from leaking roofs, wind damage and fallen trees, and they expect a small-to-medium sized event.

The winter rain comes after extreme flooding in February/March that impacted large parts of Queensland and NSW was Australia’s costliest natural catastrophe in two decades, with insured losses estimated at $4.8 billion.

Some parts of NSW have experienced four floods in 18 months, and ICA CEO Andrew Hall says it is "just untenable” to keep homes that repeatedly flood adequately covered in an insurance pool.

“You have got to stand back and ask the question, ‘Have we built homes in the wrong spot?'," Mr Hall said. "The frequency and severity of these recurring events demands meaningful action, and this means resilient homes, better mitigation and a thorough review of land-use planning.”