Insurance policies provide financial protection in a broad range of circumstances but each type of product specifies certain situations where the policy will not respond. These vary from one type of product to another, and can vary in detail between one insurer and another. It is important to check the details of your individual policy. However the questions and answers below seek to set out the usual approach for each of the main types of insurance. If you have specific queries on your policy you should approach your insurer or broker.
Property cover
Will my home be covered if it is damaged or destroyed in a terrorist attack?
Yes. Household, buildings and contents policies include damage by fire, explosion or impact whether caused accidentally, through the malicious act of an individual criminal or in an act of terrorism. This cover will normally include the cost of alternative accommodation whilst your home is being repaired, typically up to a total of 20% of the sum insured. However contamination cover, whether caused accidentally or through malicious or terrorist activity, is excluded under household policies. In these circumstances the consequential costs such as alternative accommodation would not apply either.
Some blocks of flats are insured under commercial, rather than household, policies. Under these policies terrorism damage is covered if the specific top-up cover readily available in the market has been taken up. This can be arranged either at the date of renewal, or added to the policy mid-term. This cover will normally include chemical, biological, radiological or nuclear contamination caused by terrorist activity. You should speak to your broker or insurer to obtain a quote and information on how to buy this additional cover.
Why isn't contamination cover included on Household policies?
Contamination has been a standard exclusion on household policies since the 1960΄s as the likely aggregation of claims (many homes will be affected by a single incident) and cost of clean-up could not be met by insurers without putting their financial viability at risk. This would not protect the interests of other policyholders. The additional cover available to commercial properties is only possible through the Pool Re Scheme, backed by government. However if the contamination is caused by a terrorist attack on premises containing nuclear material insured by the Pool Re Nuclear Scheme, the third party liabilities towards other people's property would be picked up by this specialist insurer.
Is cover available for businesses? What about consequential losses?
Yes. You can obtain terrorism cover as an add-on to your property cover and should ask your insurer for a quote, either at renewal or mid-term if you wish to review your situation. This is available on a competitively priced basis, but is associated with your property policy if obtained through the Pool Re scheme, available via most commercial property insurers. Alternatively some terrorism cover is available on a stand-alone basis through the Lloyds of London market.
Commercial property terrorism cover is normally provided on an All Risk basis and includes biological, chemical, radiological and nuclear contamination, and the consequential business interruption losses. However it does not include e-risks, nor losses due to hoaxes.
Why isn't terrorism cover a standard part of commercial property cover?
There is no statutory requirement to have this cover in place. However you should check your contractual requirements, as you may need to put in place such cover to meet your obligations under certain types of contract (for example in leases or loan agreements). You can opt into this cover if you require it by asking your property insurer for a quote and paying the additional premium.
Terrorism: Acts of Terrorism: When will Insurance Respond?
Insurance policies provide financial protection in a broad range of circumstances but each type of product specifies certain situations where the policy will not respond. These vary from one type of product to another, and can vary in detail between one insurer and another. It is important to check the details of your individual policy. However the questions and answers below seek to set out the usual approach for each of the main types of insurance.
If you have specific queries on your policy you should approach your insurer or broker.
Property cover
Will my home be covered if it is damaged or destroyed in a terrorist attack?
Yes. Household policies include damage by fire, explosion or impact whether caused accidentally, through the malicious act of an individual criminal or in an act of terrorism. This cover will normally include the cost of alternative accommodation whilst your home is being repaired, typically up to a total of 20% of the sum insured. However contamination cover, whether caused accidentally or through malicious or terrorist activity, is excluded under household policies. In these circumstances the consequential costs such as alternative accommodation would not apply either.
Some blocks of flats are insured under commercial, rather than household, policies. Under these policies terrorism damage is covered if the specific top-up cover readily available in the market has been taken up. This can be arranged either at the date of renewal, or added to the policy mid-term. This cover will normally include chemical, biological, radiological or nuclear contamination caused by terrorist activity. You should speak to your broker or insurer to obtain a quote and information on how to buy this additional cover.
Why isn't contamination cover included on Household policies?
Contamination has been a standard exclusion on household policies since the 1960΄s as the likely aggregation of claims (many homes will be affected by a single incident) and cost of clean-up could not be met by insurers without putting their financial viability at risk. This would not protect the interests of other policyholders. The additional cover available to commercial properties is only possible through the Pool Re Scheme, backed by government.
However if the contamination is caused by a terrorist attack on premises containing nuclear material insured by the Pool Re Nuclear Scheme, the third party liabilities towards other people's property would be picked up by this specialist insurers.
Is cover available for businesses? What about consequential losses?
Yes. You can obtain terrorism cover as an add-on to your property cover and should ask your insurer for a quote, either at renewal or mid-term if you wish to review your situation. This is available on a competitively priced basis, but is associated with your property policy if obtained through the Pool Re scheme, available via most commercial property insurers. Alternatively some terrorism cover is available on a stand-alone basis through the Lloyds market.
Commercial property terrorism cover is normally provided on an All Risk basis and includes biological, chemical, radiological and nuclear contamination, and the consequential business interruption losses. However it does not include e-risks, nor losses due to hoaxes.
Why isn't terrorism cover a standard part of commercial property cover?
There is no statutory requirement to have this cover in place. However you should check your contractual requirements, as you may need to put in place such cover to meet your obligations under certain types of contract (for example in leases or loan agreements). You can opt into this cover if you require it by asking your property insurer for a quote and paying the additional premium.
by George McGonigal
George is the proprietor of UK based insurance websites that allow visitors to obtain fast online quotations without obligation, for all types of insurance product. Why not check us out at the following sites. Car Insurance UK: Simple but substantial online directory of top UK Insurers. Car Insurance Scotland: Compare online quotes for residents of Scotland. Car Insurance Northern Ireland: Cheaper online quotes for car insurance.
Term life insurance quotes are rarely a concern of single... Read More
I've long wanted to write an article about Internet Leads... Read More
Adequate life insurance to cover your income producing ability is... Read More
As a property owner it is essential to protect yourself... Read More
In most cases, private health insurance comes through a person's... Read More
Do you consider the cost of insurance before you buy... Read More
Risk is an area often overlooked by landlords, but failing... Read More
Your latest car insurance bill has arrived and it is... Read More
The topic of insurance is not sexy by any means.... Read More
The online life insurance companies offer a free service where... Read More
Farmers auto insurance is a very large insurance company that... Read More
A person might need long term care (LTC) if he/she... Read More
Our money saving auto insurance tips were written for one... Read More
If you find yourself in the position of shopping for... Read More
Everyone is searching for a way of cutting costs, a... Read More
Disability income insurance can cover you in the event of... Read More
First the bad news: about 2,000,000 personal bankruptcies each year... Read More
There are many options available for life insurance, and for... Read More
Before the internet, you picked a neighborhood car insurance agent,... Read More
Americans shopping for their own healthcare insurance can substantially cut... Read More
One of the things that is important to consider when... Read More
If you're planning an overseas trip, you need travel health... Read More
There are different types of life insurance policies available. Shop... Read More
Unlike term life insurance, permanent insurance policies such as universal... Read More
Insurance versus assurance: what is the difference?Should you care?Yes!!The world... Read More
Which type of policy is best for you, term or... Read More
When you start a small business you will need to... Read More
Renters insurance is often overlooked by people who are renting... Read More
If you rent an apartment or house, you might consider... Read More
Whole life insurance quotes the most expensive kind of policies... Read More
One of the greatest pleasures that a man can have... Read More
Cheap term life insurance is easier to get than most... Read More
Because of the many problems that can occur when you... Read More
There are many choices for insurance. Insurance is a policy... Read More
If you want to save money when you purchase your... Read More
As we go through life our needs change. A Young... Read More
Auto insurance rates will vary depending on the insurance agency,... Read More
A life insurance broker is a dedicated person that encourages... Read More
At first glance, homeowners insurance may seem perplexing and quite... Read More
Several key changes are necessary to get control of the... Read More
It has become increasingly difficult to get young driver car... Read More
Nowadays, auto insurance is really expensive. A typical insurance policy... Read More
A Health Savings Account (HSA) is not a type of... Read More
Almost anything can be insured these days: breasts, legs, your... Read More
Unlike term life insurance, permanent insurance policies such as universal... Read More
You can pay as you talk with a cell phone... Read More
Life insurance protects you and your family from economic hardship... Read More
A recent survey took the most popular type of home... Read More
Risk is an area often overlooked by landlords, but failing... Read More
An auto insurance claim adjuster works for the insurance company... Read More
Renter's insurance is protection intended for anyone who rents an... Read More
Why Private Medical Insurance Is Becoming So PopularRecent research indicates... Read More
They say everything is bigger and better in Texas, and... Read More
It is a fact that more and more people everyday... Read More
When you want to purchase a life insurance policy, you... Read More
Naming a beneficiary for your life insurance policy can be... Read More
Following a few simple tips and taking these measures will... Read More
Long-term care insurance policies have a variety of features and... Read More
Although car insurance is compulsory, it's not necessary to pay... Read More
Part and parcel of establishing your own photographic business is... Read More
Insurance adjusters are not without outside pressures they must deal... Read More
Farmers auto insurance is a very large insurance company that... Read More
What exactly is Term Life Insurance?Term life is a form... Read More
The Health Savings Account (HSA) is an amazing tool that... Read More
Many factors affect the premium you will pay for auto... Read More
Did you know? One year of disability can wipe out... Read More
Insurance |