The mounting cost of the second major flood to hit Queensland in as many years has turned attention towards mitigation measures recommended but yet to be implemented, and the cost and availability of insurance.

By Friday afternoon insurers had received 25,800 claims in the state with an insured loss of about $290 million, according to the Insurance Council of Australia (ICA).

In northern NSW 2000 claims had been received at an insured cost of about $10 million.

“ICA expects these numbers to rise rapidly as assessors enter inundated homes and businesses across flood-affected areas,” council CEO Rob Whelan said.

“Insurers are working as fast as possible to inspect damaged properties, complete their assessments and speed up the recovery effort.”

Assessors began their work in Gayndah and Monto last week, Mr Whelan says.

In a statement to the Australian Securities Exchange last week, Suncorp said it had received 4500 claims. The insurer has an allowance of $520 million for events until June 30.

IAG’s flood exposure is capped at $150 million for the first event under this year’s reinsurance program. It had received 5600 claims by last Wednesday.

As the first assessors visited properties and clean-up crews began their work last week Queensland Premier Campbell Newman blamed the Federal Government for failing to provide sufficient funds for mitigation work.

In 2012/13 the State Government will spend $41.9 million on four programs, while the Federal Government has allocated $104.4 million over four years.

Attorney-General Nicola Roxon accused Mr Newman of “gamesmanship”, citing the $9 billion being spent by the Federal Government rebuilding Queensland following the previous major floods in 2010/11.

The Federal Government has also announced a $1000 flood relief grant program.

However, Mr Whelan says mitigation programs are disappointing, telling ABC’s Lateline the amount of money earmarked is “nowhere near enough”.

“I know it’s difficult times for governments and communities but it is actually a good investment to save having to replace and repair; why don’t we prevent in the first place?”

Mr Whelan says each levee costs about $15 million, but the affected community could be spared about $100 million in damages.

In Ipswich, where the Bremer River peaked at 15 metres and more than 660 homes have been affected, Mayor Paul Pisasale has accused the industry of passing the buck and “profiting from disaster”.

“What [Mr Whelan] said... it was the most appalling timing,” Mr Pisasale said. “Their new game seems to be to put insurance premiums up so people can’t afford insurance.

“We’ve spent millions and millions of dollars on flood mitigation and all councils are struggling, yet insurance companies… all we see are the huge profits getting bigger and bigger and bigger.”

Since the 2011 floods the cost of cover has risen across Queensland as insurers benchmark premiums against the risk of another major event.

Nearly 80% of homes in Australia are now covered for flood, up from 50% two years ago and just 3% in 2006 – a rise partially aided by a universal definition of flood introduced by the Federal Government last June.

But Queensland still has the lowest penetration of flood cover, at 61% of all homes.

Some parts of the state have become virtually uninsurable, while in others the cost of flood cover is prohibitively expensive and some insurers are said to be avoiding offering cover in high-risk areas.

Affordability has also driven many householders to limit cover. Allianz spokesman Nicholas Schofield says data collected by the insurer over six months last year shows 95% of Queensland residents at risk of a one-in-49-year flood have opted out of cover.

In NSW figures from January to September last year show 98% of policyholders removed flood from their policies.

Mr Whelan says insurers can only measure risk and set accurate premiums. In communities where levee banks have been installed the cost of premiums is up to 70% cheaper than in those without mitigation measures.

“The price now is actually reflecting the true risk and insurers really have to charge the right price – otherwise they won’t have the premiums to pay the claims,” he said.

While many towns across central and southeast Queensland and northern NSW have been inundated by floods caused by ex-tropical cyclone Oswald, Bundaberg has been the worst affected. The Burnett River peaked at 9.6 metres, damaging at least 2000 homes.