Blue Mountains residents who lost their homes in the bushfires may be forced away from the area under new building regulations Fire crews at work in the Springwood are of the Blue Mountains. THE Blue Mountains is bracing for an exodus of underinsured bushfire victims who cannot afford to rebuild their homes because of strict new building regulations introduced for fire zones. Bushfire recovery co-ordinator Phil Koperberg estimates at least 60 of the more than 200 homes destroyed in the October fires won't be ­rebuilt because the owners had been underinsured by as much as $150,000. Most insurance policies did not cover the extra cost to build under new fire protection building standards introduced after Victoria's Black Saturday bushfires in 2009. "They are grossly underinsured, and they did not know that because they weren't aware that if they had to rebuild their homes it would be under a different set of codes," Mr Koperberg said. Many of those who choose to stay will be out of pocket $80,000 to $120,000. Some will just add to their mortgage, others will take on a mortgage. It is very difficult times ahead for people," Mr Koperberg said. More than 200 homes were destroyed and a further 110 ­severely damaged, with Winmalee, Springwood and Yellow Rock the worst affected areas. Springwood Country Club golf pro Joe Moore lost everything when a fireball engulfed his home on Heather Glen Rd. Mr Moore said he thought he was overinsured by Apia, who paid him out $500,000. But it will cost him close to $800,000 to rebuild to the new fire protection codes. "We are a lot better off to sell up and go and buy something somewhere else," he said. Most of the homes that were destroyed by the October fires are in what is called "flame zones," where strict fireproofing rules apply. That includes thickened glass, no exposed timber or wooden decks and installing roofs that are less likely to capture falling embers. Insurance Council of Australia media manager Campbell Fuller said it was up to policy holders to decide on the sum their home would be ­insured for and to keep abreast of changes to building codes through their local council. Finance Minister Andrew Constance said that attitude by the insurance industry was a "bit rich." "The insurance policy history on some of these properties goes back decades, and given the premiums collected in that time, it's a bit rich if the industry walks away from their responsibilities," Mr Constance said. Blue Mountains mayor Craig Greenhill has raised $3 million through a mayoral fund to assist bushfire victims but it goes nowhere near enough to help underinsured owners rebuild. Mr Constance said the NSW Government would not provide financial assistance to bushfire victims to rebuild. "The NSW Government is not willing to set a precedent that exposes the taxpayer for underinsurance due to the ­insurance industry not communicating with policy holders the level of exposure in their local area," he said. If you live near bushland you need to contact your local council and insurer to ensure your policy reflects the true cost of rebuilding.