An angry Victorian Premier Daniel Andrews said an independent review would get to the bottom of how a planned burn escalated into a bushfire.
"If there's compensation that needs to be paid - it will be paid. I probably can't be any clearer than that," Mr Andrews told reporters on Thursday.
Two houses have been confirmed destroyed so far in the Lancefield fire, which developed into an out-of-control bushfire on Tuesday after escaping containment lines over the weekend.
Furious residents demanded answers at a community meeting on Wednesday and the premier promised they would get them.
"They're right to be angry," he said.
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"I'm angry too. I don't understand how this has happened, but we're going to get to the bottom of it.
Likely more homes will be lost: CFA
The CFA is assessing the fire ground in Victoria and say it's likely there will be more homes lost by the end of the day.
The property losses from Victoria's main bushfire zone are likely to rise once ground assessments are completed by the end of the day.
The current losses stand at two houses, six sheds and two cars, the Country Fire Authority says.
Metropolitan Fire Brigade and Victoria Police teams are out assessing safe areas of the fire ground near Lancefield, and have covered about a third of the 4000 hectares so far.
"We expect by the end of the day when those crews report back in that we will see some increases in loss levels," CFA chief officer Euan Ferguson told ABC News 24.
"We are working feverishly and we have a lot of resources that are applied to this task at the moment."
Emergency warnings have been downgraded to "watch and act" for the blaze near Lancefield that was threatening the Benloch area on Thursday morning.
The CFA downgraded the blaze shortly before 9am, but it is still not under control.
Residents in Baynton, Baynton East, Benloch, Emu Flat, Nulla Vale, Pastoria, Pastoria East and Sidonia are still being warned to be vigilant.
Community meetings are being held at Lancefield Mechanics Institute in Lancefield.
Questions to answer
Opposition Leader Matthew Guy said the government had to answer questions about whether enough staff were watching the fire when it escaped containment lines on AFL grand final Saturday.
Emergency warnings have been downgraded to "watch and act" for the 4000-hectare bushfire near Lancefield that was threatening the Benloch area on Thursday morning.
The Country Fire Authority downgraded the blaze shortly before 9am, but it is still not under control.
Residents in Baynton, Baynton East, Benloch, Emu Flat, Nulla Vale, Pastoria, Pastoria East and Sidonia are still being warned to be vigilant.
Emergency Management Victoria expects conditions to be milder on Thursday, with variable winds.
"Property owners in fire-affected areas need to stay alert in case conditions change," the emergency warning said on Thursday.
Community meetings will be held at the Lancefield Mechanics Institute in Lancefield at 11am and 8pm.
Environment Minister Lisa Neville says an independent investigation into the Lancefield burn-off will begin next week.
It will be led by the director of Western Australia's Office of Bushfire Risk Management, Murray Carter, and all findings will be made public.
