Australian Prime Minister Julia Gillard on Monday flew to Victoria to visit the flood-hit town of Echuca.
According to Gillard, she is waiting for advice from Victorian Premier Ted Baillieu on what level of financial assistance the federal government can give the state for its current flood crisis.
She said she expected insurance companies to show the same generosity of spirit the Australian people had shown throughout the floods crisis which had devastated Queensland as well as
hitting New South Wales, Tasmania and Victoria.
"What I would certainly say to them is they should be doing the right thing by the people of Australia at a time as tough as this, " she told reporters in Melbourne on Monday.
"My message to the insurance industry would be to show the same kind of spirit the people of Australia have been showing as they' ve really pulled together in these very difficult
circumstances."
Meanwhile, Gillard said there would be large economic consequences flowing from such a "huge catastrophe" affecting five states in Australia.
She said the floods is probably the biggest natural disaster the country has faced in economic terms, and the government will be
managing the federal budget to meet the needs of recovery and rebuilding.
Due to extreme rainfall that has battered the state, Wimmera River was expected to peak on Tuesday.
The western Victorian town of Horsham, which is close to Wimmera River, is facing the prospect of a one-in-200-year flood.
Horsham Mayor Michael Ryan said the town of 7,000 has not experienced such a flood threat in its history.
In the state's north, Echuca remains under water where the Campaspe River peaked overnight.
The State Emergency Services (SES) in last two days received 5, 500 calls for help, with 46 Victorian towns now affected by floodwaters.
So far this week, 14,000 properties across Victoria have been flooded and 3,500 people have been forced to abandon their homes.
Hundreds of roads across Victoria have been closed since Friday because of flooding.