Bushfire victims on the Eyre Peninsula will face multi-million dollar rebuilding costs due to widespread underinsurance. While insurers are paying out more than $26 million, early estimates show rebuilding costs will be much higher.

More than $4 million in fencing costs is not expected to be covered by insurers because farmers were either not insured or underinsured. Fences are, on average, between 50% and 70% underinsured, while sheds are 50% underinsured.

Insurance Disaster Response Organisation SA spokesman Chris Newland says claims had been lodged for around only 50 of 70 homes destroyed in last month’s fire. The rest are likely to be owned and insured by government agencies, with others not insured at all.