Claims are still pouring in from Townsville following devastating floods in the north Queensland city this month.

The latest Insurance Council of Australia (ICA) figures show 21,515 claims have been lodged, with estimated insurance losses of $887 million.

This represents 19,614 residential claims and 1901 commercial claims.

Many small businesses did not hold flood cover, raising fears some could face ruin if insurance claims are denied.

ICA says flood cover has been available to Townsville businesses since 2007, but National Insurance Brokers Association CEO Dallas Booth told insuranceNEWS.com.au it is not easy to place.

Mr Booth, who travelled to Townsville to meet owners of affected businesses, says “the majority” did not have flood cover and most made the decision on cost.

But he says there is “a supply issue” and “cover is not readily available”.

“It is available, but it is not included as a matter of course, and it is strictly underwritten. It is not always provided when requested.

“Invariably, brokers did talk to clients about flood cover and did recommend flood cover.”

Damaged premises without flood cover will be individually assessed by insurers and hydrologists to ascertain if they have a storm damage claim. It is not known how many claims will be declined.

Standard wording defines flood as “the covering of normally dry land by water that has escaped or been released from the normal confines of any lake, river, creek or natural watercourse, whether or not altered or modified, or any reservoir, canal or dam”.

Mr Booth emphasised that his comments are not a criticism of insurers.

“The challenge for insurers is the same challenge they face with residential strata [in the region] – it is called weather. Townsville has had a massive amount of [rain], and there are people from the insurance industry everywhere responding to the needs of the community.”

He says the flood illustrates again the need for “proper planning, proper mitigation and inbuilt resilience. We have to be much smarter in the way we build and manage communities to keep down the cost of claims.”

ICA CEO Rob Whelan says claims are being assessed “on a case-by-case basis, taking into account the damage sustained and the terms and conditions of individual insurance policies”.