Wildfires in California and the consequences for insurers

Because insurers reinsure their risk on an international market. A series of major natural disasters makes that reinsurance more expensive and scarcer. That cost price ultimately comes back in premiums and in stricter acceptance conditions. The effect is indirect and delayed, and in the Netherlands smaller than the influence of rising building costs on the sum insured.

Yes, most general insurance policies contain a variation provision allowing the insurer to adjust the premium or the conditions at the contract renewal date. You are notified and generally have the right to refuse the change, which ends the insurance. In that case, first check whether suitable cover is available elsewhere before you cancel.

Every insurer applies its own acceptance policy; a refusal by one does not mean you cannot be insured anywhere. For properties with thatch, timber or listed status, some insurers work with a valuation report and additional prevention requirements. An adviser with access to several insurers can search more precisely. Always disclose an earlier refusal on a new application; that falls under the duty of disclosure.

Fire, storm, hail and rainfall are standard cover in the Netherlands and are expected to remain so. The limit lies with catastrophe risks that cannot be spread, such as flooding from the failure of a primary flood defence. Government rules on compensation exist for that. It is likely, though, that prevention requirements and excesses will play a bigger part in acceptance.