Standard property insurance policies do not cover damage caused by acts of war or terrorist attacks. While such events are thankfully rare in the UK, there is still a continual underlying threat…
If an act of terrorism affects your block and there is no insurance in place, the directors of a residents management company are exposed to the risk of being sued and losing personal assets.
Other risks you may consider include:
- Residents in a block of flats could be potential targets due to their place of employment or other factors
- A bomb could be assembled or travel through your local area, leading to an unplanned explosion or evacuation
- An occupying tenant could be a potential terrorist, so there could be a police raid on the property or an accidental explosion.
Main policy features *
Terrorism insurance typically covers buildings and contents, business interruption and loss of rent.
It is important to remember that HM Government or Treasury must declare an act of terrorism before a claim can be made against a policy providing protection for acts of terrorism. The definition of an act of terrorism is complicated, although you can find out more including the official definition in the Reinsurance (Acts of Terrorism) Act 1993.
Importantly, we can only provide terrorism cover if arranging the main fire insurance policy for the property, and that terrorism cover will only operate while the main fire policy is in force.
Terrorism insurance exclusions typically include:
- The transmission or receipt of any virus, program or code that causes loss or damage to any computer system
- Any loss of market for your products or services
- Strikes, riots or civil commotion unless damage or loss is caused directly by an act of terrorism
- War, invasion or war like operations.
* This information is a general guide only. Adler Fairways will assess your requirements and recommend a bespoke range of insurance solutions to meet your needs. As part of the quotation process, we will provide full details of the specific coverage, benefits, limits, premiums, exclusions, excesses payable, and any other policy conditions that would apply to the insurance we recommend for you. We currently only offer cover to businesses registered in England, Scotland, Wales, Northern Ireland, the Channel Islands and the Isle of Man.