My chiminea is actually made from cast-iron and works a treat. I couldn't afford a terracotta one and heard that they can crack easily. Mine is tucked away and comes out when needed. The heat that it radiates is amazing and I believe it burns much hotter than an open fire pit and uses less wood. I love it.

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Its all noted in the building code of Australia (now called the National Construction Code). There are however a few ways of achieving the required ratings. There is not only just one way. To give the correct advice you'll need an architect, a building designer or a good draftsman (or other building professional) on site to do a thorough inspection. Also accoustic's are another issue to be aware of, depending on scope of works.

There are lots of people living in highly flammable, unsuitable older properties in flame zones without any problems, but only because they've been otherwise very well prepared and/or lucky. Speaking from experience, it's also very stressful. Building your home to BAL FZ or 40 will cost more but will give you and your family peace of mind. If you have the already purchased the land then you really gave no option but to comply with the code. If not, then you might want to reconsider if that block is right for you.