A Narrabri Shire Councillor says the issue of insurance premiums in Wee Waa needs to be examined as current levels are unaffordable for ratepayers.
Councillor Ron Lowder is calling on Council to contact the Insurance Council of Australia and Nationals' MP, Kevin Humphries.
He says flood insurance premiums have risen by up to 400 per cent.
Councillor Lowder says residents are choosing not to take out flood cover, and he wants a review of premiums in Wee Waa.
"A lot of the residents have opted out of flood protection insurance, because they simply can't afford it," he said.
Councillor Lowder says a review of Wee Waa's flood categorisation is required.
He says the levee was put in place in the 1970s and the town has been flood-protected for more than 30 years.
"We understand premiums do go up, but there should be some consideration of the fact that the risk is mitigated to quite a degree by the levee," he said.
"Insurance companies often give a discount to home owners if they take out certain security measures with their homes, so I really think that should apply in this case with Wee Waa's flood protection."
© ABC 2013
17:21 EDT After a good soaking, there is more rain ahead for Western Australia's Pilbara and Gascoyne.