With the NSW state election due on March 28, the Labor opposition has branded the bushfire insurance system too complex and called for a better model to avoid underinsurance.

Finance and services spokesman Peter Primrose says if his party is elected it will work with the insurance industry and other stakeholders to help consumers correctly estimate rebuilding costs.

“The 2013 fires showed that while about 97% of homeowners were insured, up to 50% found they did not have sufficient insurance to rebuild what had been destroyed,” he said.

“The vast majority of homeowners have gone to the effort of getting insured, but the current system is too complicated. We need a better model.”

Since 2009 all development or reconstruction on land designated at-risk must conform with bushfire attack level (BAL) ratings, which influence the materials to be used and building standards met.

“Homeowners are expected to know how council classifies the land, then work out the BAL rating – which is complex – and ensure those special rebuilding requirements are adequately calculated in their insurance,” Mr Primrose said.

Labor says it would work to resolve issues that prevent homeowners calculating their ratings.

The Insurance Council of Australia (ICA) says it is happy to take part in discussions on cover in bushfire-prone areas.

It says responsibility lies with local councils to advise homeowners of land zoning. Online home insurance calculators published by many insurers – as well as ICA’s Understand Insurance home building calculator – provide an inflation factor for properties that may be in prone areas.