The Federal and Victorian governments’ agreement to jointly fund site demolition and clean-up work in areas affected by the Victorian bushfires applies to both the uninsured and the insured – but insurance companies will have to pay where they have claimants.

Prime Minister Kevin Rudd last week announced government funds would cover the immediate clean-up work. Many households are facing clean-up and demolition bills of $10,000 and more. Insurance policies typically cover clean-up work.

“Delivering a government-funded program that is sensitive, safe and timely will help families and communities to focus on rebuilding and putting their lives back together,” Mr Rudd said.

The program will reimburse landowners who have already engaged licensed contractors, but the Federal Government says it expects insured residents to use the provisions of their policies.

The two governments expect the clean-up scheme to reduce the risk of hazards such as unstable buildings and asbestos. The state government will engage a project manager to carry out the work, which is expected to take at least six months.