Extreme fire danger risk triggers insurance policy embargoes

As 58 bush and grass fires burn across NSW, an insurance insider warns embargoes may apply for people looking to insure their home now.

Multiple weather warnings are in place for the Illawarra as the region faces extreme fire danger, a top of 38 degrees and wind gusts up to 100kmh.

As of 11am on Wednesday, October 22, no fires are burning in the Illawarra; however, there is a bushfire in Little Forest in the Shoalhaven.

Sophie Ryan, from insurance comparison provider iSelect, said severe weather conditions, such as bushfires, can trigger insurance embargoes.

"Embargoes place temporary restrictions on new insurance policies when disasters are declared and help manage risk and prevent opportunistic claims," she said.

Insurers often place embargoes on insurance policies to prevent peo