Reinsurance
- Capacity traded worldwide
- More expensive after major natural disasters
- Feeds through into rates with a delay
- Affects fire and catastrophe risk above all
Reinsurance · acceptance policy · prevention
Wildfires in California and the consequences for insurers
A natural disaster affects more than the region hit. Through the reinsurance market, such a claims burden feeds through into rates and acceptance conditions here too.
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Deze pagina in het Nederlands: Natuurbranden in Californië en de gevolgen voor verzekeraars.
The calculator and the quote form below are in Dutch. Prefer to do this in English? Email info@finassverzekert.nl or call 072 - 509 24 56 and we will take it from there.
Work out your own premium with the calculator.
Enter your details; you will receive a proposal within one working day.
- We compare the offerings of several insurers
- An adviser checks whether the cover suits your situation
- We arrange the switch, including cancellation
A premium indication, not personal advice. Prefer to talk it through? Call 072 - 509 24 56.
In brief
An insurer does not carry every risk itself. Large or concentrated risks are passed on to reinsurers, which in turn spread them worldwide. Seen that way, a natural disaster in California is not a local event: the costs land partly with the same parties that reinsure the portfolios of European insurers. If reinsurance becomes more expensive, that pushes up the cost price of every policy.
The second effect is less visible but more noticeable for the customer: stricter acceptance. Insurers adjust by limiting concentrations of risk, applying higher excesses, imposing prevention requirements and being more cautious about accepting certain properties or areas. In the Netherlands you see that above all with properties with a thatched roof, timber construction, solar panels or an increased burglary or water risk.
For you as the insured this mainly means that the conditions matter more than the premium. Prevention requirements are not advice but policy obligations: if they are not met, the insurer may limit the payout. See also what is changing for personal insurance.
How a claims burden feeds through into your policy
Three mechanisms translate a distant disaster into a concrete change on your policy schedule.
Acceptance policy
Which risks an insurer is still willing to take on and on what conditions.
- Thatch, timber and listed buildings viewed more critically
- Solar panels assessed separately
- Spreading across postcode areas
- Varies considerably by insurer
Prevention requirements
Obligations in the policy intended to prevent losses.
- Smoke alarms and firefighting equipment
- Inspection of electrics and chimney
- Burglary-resistant locks
- Failure to comply costs cover
What is covered
| Situation | Standard policy | With prevention requirements |
|---|---|---|
| Fire damage to the building | Yes | Yes |
| Acceptance of a thatched roof or timber construction | Provided that | Yes |
| A payout where a stated requirement has not been met | No | No |
| Damage to solar panels on the roof | Provided that | Provided that |
| Flooding caused by the failure of a primary flood defence | No | No |
| Earthquake, acts of war and nuclear reaction | No | No |
What is actually covered, including exclusions, limits and the excess, is set out in the policy conditions and the insurance card (verzekeringskaart) that you receive before you take out cover.
What this means for you in practice
Two points on which you have influence yourself in a hardening market.
Prevention requirements are policy obligations
If your conditions state that smoke alarms must be present, that the chimney is swept periodically or that locks must meet a particular standard, that is not a suggestion. If a requirement is not met and that is connected with the loss, the insurer may reduce or refuse the payout. Record compliance: keep inspection reports, installers' invoices and photographs. That costs little and saves an argument at claim time that you would otherwise have to prove yourself.
Compare on exclusions, not on premium
In a hardening market, cover is cut back sooner than price. So watch the firm limits: flooding caused by the failure of a primary flood defence, earthquake, acts of war and nuclear reactions and deferred maintenance, wear and design faults are excluded almost everywhere, and intent and recklessness under Article 7:952 of the Dutch Civil Code. Also look at limits for valuables, the excess for storm and whether there is a guarantee against underinsurance.
What does your premium depend on?
- Rebuild value or sum insured — the basis of calculation
- Construction type and roof covering — thatch and timber count heavily
- Postcode area — concentration of risk per area
- Preventive measures — alarms, locks, inspections
- Claims history — yours and the portfolio's
- Excess — higher excess, lower premium
Insurers weigh these details differently. That is why comparing pays off.
How we arrange it
- You request a quoteWe take stock of your situation, risk and wishes.
- We compareseveral insurers, on premium as well as conditions.
- You receive a proposalWith an explanation of the differences and the exclusions.
- We arrange the switchIncluding cancellation, so there is no gap in cover.
9.5New policy
9.8Claims handling
Customers rate our service on four aspects: personal service, service delivery, availability and the outcome. The reviews are collected and published by NH1816 and come from customers who have actually taken out a policy with Finass Advies B.V. or reported a claim.
Frequently asked questions
The questions we are asked most often about this.
Why does a fire in California affect a Dutch policy?
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.
Can my insurer change the premium or conditions during the term?
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.
What if my home becomes hard to insure?
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.
Will climate damage still be insured in future?
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.
Read more
Within Opstalverzekering
- Opstalverzekeringthe main page
- De gevolgen van de branden in californie voor nederland
- Waarom is de verzekering van huiseigenaren zo duur in californie
- Why we work with different insurers
- Beste opstalverzekering
- Affordable buildings insurance (opstalverzekering) without stripping back your cover
- Wat beinvloedt de kosten van een eigendomsverzekering ontdek het hier
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Does your policy still meet the requirements set?
Request a quote without obligation; we will go through the cover, prevention requirements and exclusions with you.
Prefer to call? 072 - 509 24 56, weekdays 09:00–17:00.
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About our service
Finass Verzekert is a trading name of Finass Advies B.V. We advise on and arrange non-life insurance on the basis of an objective analysis of several insurers, and receive commission for this from the insurer, which is included in the premium. You pay no separate advice fee. Before you take out cover, we establish your wishes and needs.
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This page was written and checked by an adviser at Finass Verzekert. Last updated on .
The information on this page is general in nature and is not personal advice.