An insurance embargo is a restriction applied by an insurer with regard to accepting new insurance policies in certain geographic areas or for specific risks for specific periods of time
An embargo typically prevents insurance being purchased when an event (such as bushfire, cyclone, flood) is known to be extremely likely or already impacting an area.
Insurers can apply embargoes on new insurance policies to restrict people buying insurance when the risks are viewed as highly elevated, or a disaster is already occurring, and then cancelling cover after the risk passes.
Insurance embargoes can apply to all types of insurance products including home, contents and motor insurance.
Depending on the circumstances, DSH Insurance may decide not to sell an insurance policy when an embargo is in place, or may stipulate a period within which we will not accept a claim against the policy, for example 72 hours up to 7 days.
Areas under embargo, and the events causing the embargo, are continuously monitored. The length of time an area is under embargo varies depending on the situation. Some areas may be embargoed for a short period (e.g. 24 hours), while other areas may be embargoed for a longer period, such as a week.
DSH Insurance will generally renew existing insurance policies during an embargo.
If you are purchasing a home or looking to take out a new policy in an area likely to experience events that could result in an embargo, avoid being caught out by buying insurance well in advance of a disaster season wherever possible. Also, as an existing policyholder, avoid allowing your insurance policies to lapse.
If an embargo is in place in your area, DSH Insurance will provide you with information on the embargo when you are making your application. DSH Insurance will offer to contact you when the embargo has been lifted to progress your application for cover.