Mr Fulton rejected the offer to renew the home insurance policy at the new premium of $4937.71.

And he has rejected assertions from Lake Macquarie City Council and the Insurance Council of Australia that the hike in premiums was not linked to the council's controversial actions on the risks of sea level rise.

"That's rubbish," Mr Fulton said of the claims.

And he said the letter from his former insurance company proves it.

The letter says, in part: "We continually update our information about flood risk, and we take into account data from various sources which may include local council flood mapping, historical flood information, terrain data and other insurance information. Our most recent updates have identified that your home has a risk of flooding."

Mr Fulton said it was clear the insurance company had increased its premiums because of "data" produced by council.

Council changed its flood plan last year to include sea-level rise risk.

And it placed notations relating to flood and sea level rise on section 149 property certificates of about 10,000 properties.

"Those are the only things that have changed," Mr Fulton said.

Residents have been critical of the council's actions because of the perceived impacts on home insurance premiums and property values.

They have called on the council to revoke the notations, as occurred in Wyong Shire, but council officials said they were legally obliged to keep them.

"My wife, Beverley, nearly had a fit when she opened the letter from the insurance company and saw how much the premiums had jumped," Mr Fulton said.

The Fultons considered asking the insurance company for a review.

But the house had to be at least 1.2 metres above ground level for a review to be possible, he said.

"And our house is one metre above the ground level."

The Fultons have lived in their Dora Street house since 1999.

"And even at the height of the Pasha Bulker storm in 2007, the water got up to the road level, and to the second and third steps of our place," he said.

There are six steps up to the Fultons' home.

Mr Fulton said talk of local government boundary shifts had given him some hope.

"I'd be happy if Dora Creek were to become part of Wyong Shire because Wyong has got rid of those 149 notations," he said.