Ms Trad said reports of conflicts between insurance companies and people affected by floods in Townsville about definitions in their policies filled her with "grave concerns".

She said she was told some insurance assessments had been very "brash and on the spot rather than allowing residents and households to actually compile the information and have a conversation with the insurance companies and claim assessors".

Ms Trad said people were crying out for a higher standard of ethics following the royal commission into the financial sector.

"If they want to rebuild trust with Australians, then it's going to start here in Queensland, in Townsville and in the north-west," she said.

"After every disaster here in Queensland we tend to get these arguments and these conflicts where people are, after being traumatised, are trying to deal with insurance companies without documentation, they've had their documentation washed away in the floods.

"What we expect from insurance companies is a level of sympathy and compassion and responsiveness to the people of Queensland right now in their time of need."

LNP leader Deb Frecklington also called on insurance companies to "ditch their tricky tactics", including issues with the definition of whether properties were inundated with storm water, and pay out policies.

"These hard-working family businesses have done the right thing, they've paid their premiums and now they've been devastated by this disaster," she said.

"The insurance companies are already saying we're not going to pay out your premiums."

Insurance Council of Australia chief executive Rob Whelan said he had spoken to Ms Trad about insurance claims and flood cover and wanted to assure Ms Frecklington that insurers were doing their best to help all customers, whether or not they had purchased flood cover.

"I have explained that flood insurance cover is readily available to all householders and businesses in Townsville," he said.

"Customers who decided against purchasing flood cover, or choose to opt out, should still lodge a claim through their insurer or insurance broker. Most policies include storm cover."

The Insurance Council of Australia will hold two forums in Townsville in the coming weeks to guide policyholders about making a claim.

About 13,560 insurance claims amounting to more than $165 million have been lodged.

On Sunday, Emergency Services Minister Craig Crawford signed the declaration lifting Townsville's disaster status, on the advice of State Disaster Co-ordinator Bob Gee.

Mr Crawford said the decision came after it was determined that the risk of loss of life, illness or injury to people, risk of property loss or damage, and damage to the environment had significantly reduced.

But he said there was still a long way to go in terms of the recovery effort.

"Within the next 24 hours our evacuation centres should be empty with everyone in need in proper accommodation," Mr Crawford said.

"Most of our schools are ready to open and hopefully they will all be reopened by the end of this week."

Mr Crawford said authorities were still working with western communities and property owners who were still dealing with the flood.

"There continue to be shocking stock losses and we know they are really hurting and we are doing everything we can to get help to them," he said.

A further 17 state schools will reopen in northern Queensland on Monday, taking the total number to 40.

So far, $4.02 million in hardship payments have been made to 23,631 people.

Fodder and fuel drops have been made, guided by local authorities, with fodder available for 35,000 cattle.

Power has been reconnected to 15,000 homes out of 17,000 which lost power.

Ms Palaszczuk said the government was in contact with supermarkets to ensure fresh stocks of vinegar to combat mould, which was "worth more than gold".

Hot, humid conditions will develop over the coming week, with residents warned to use insect repellent.

The North Queensland Floods Appeal has received more than $2 million so far.