Around 10% of the 121 homes destroyed in the NSW bushfires were uninsured and almost half had no contents insurance at all, according to statistics from the Insurance Disaster Response Organisation.

Research conducted by the Insurance Council indicates that nationally the situation may be even worse, with almost one in five households without home insurance.

ICA Executive Director Alan Mason said he is alarmed at the level of underinsurance in Australia. “The bushfires and the wave of recent natural disasters only emphasise the need for people to have affordable access to insurance cover,” Mr Mason said.

“But the fact that Australia has the highest insurance taxes in the world is discouraging people from either buying any insurance, or the right level of insurance, to protect their property.”