Since the 2003 Canberra bushfires destroyed 488 homes and revealed up to 40% of claimants were underinsured, home insurers across Australia have improved their policies, according to a new report from the Australian Securities and Investments Commission (ASIC).

It has found home insurers across Australia now provide consumers with better access to information on the cost of rebuilding.

The report, “Making home insurance better”, examines steps the industry has taken to improve its practices since the release of an ASIC study into underinsurance in 2005.

Executive Director of Consumer Protection Greg Tanzer says it’s extremely difficult to estimate how much it will cost to rebuild homes, and most consumers require expert help.

“Fortunately, recent steps by the industry to review pricing practices and the level of home insurance provided have significantly reduced the risk of consumers being underinsured,” he said.