Stephen Harris is still living out of a shed and a caravan, 18 months after floods devastated his home in the northern Victorian town of Rochester.

Shells of homes, shipping containers and furniture in front yards are still fixtures of Rochester's streets as residents battle insurance companies for compensation.

Mr Harris is now one of the many Australians talking to a senate inquiry into the response by insurance companies to major flood claims.

Standing outside his caravan, Mr Harris said insurers must be held accountable for their actions.

"I don't want to see any parliamentary recommendations made to the Insurance Council of Australia, I want to see changes to law."

Mr Harris told the senate inquiry in Rochester his insurance company was aware "two weeks after the floods" that the flooring of his fibro house was not able to be restored.

But he told the inquiry it took eight months and an official complaint to his insurer for him to find that information out, and that his property "would likely be uneconomical to repair".

After making an official complaint to the insurer, it took Mr Harris a further 10 months to settle with the company.

"All these different inquiry meetings and everything else are honestly a waste of people's time if it isn't enforceable change made to the whole insurance industry," Mr Harris said.

The senate inquiry today moves to Heathcote, which also has a history of flooding and was hit hard in October 2022.

He and his wife are still living in a caravan while they wait for their house to be built and relocated after taking a cash settlement. 

The Rochester inquiry heard similar stories from residents and support agencies describing the "dementing" experience of dealing with insurance companies.

Eastern Community Health small business financial counsellor Kellie Davis told the inquiry there were still 29 unresolved cases in the Goulburn Valley due to disagreements between the insurer and client over the extent of damage or settlement amounts being too low.

"In the utmost of good faith, they've taken out a policy, they've paid their premiums, and they believe they have protection," she said.

"Not, 'How can I avoid paying out as much as possible on this claim?'"

The frustrations in Rochester were echoed in the Victorian government's interim report into the October 2022 floods.

"Timely insurance processing is crucial for easing financial strain and expediting post-disaster rebuilding. Delays or inadequate coverage prolong hardships, hindering recovery for individuals and communities," the Upper House committee's interim findings stated.

The report showed there was still a "pressing demand" for support for communities hit hard by the floods, primarily in northern Victoria.

It included six findings, including a "critical necessity" for support for people's emotional and mental health.

The 102-page report found the housing crisis was making flood recovery even more difficult for many.