Standard insurance policies do not cover damage caused by acts fo war or terrorist attacks. While such events are appreciatively rare in the UK, there is still a continual underlying threat.
Terrorism
The MGP Group
If your property is located in a target area, such as near government buildings, major transport hubs, or famous buildings, terrorism insurance would provide you with peace of mind and the financial protection to put things right if the worst should happen.
Past events have proven however that terrorism by its very nature is designed to inhibit freedom by fear and so any densly populated areas such as city centres should be taken into account.
With this in mind the threat of terrorism and evacuation procedures should be considered where access and /or time management could perhaps be critical to your business; there doesn’t have to be material loss to cause major interruptions.
Whilst Terrorism can be insured as a separate policy it is more common to add it as a “special” to a material damage and consequential loss policy.
The insurance is rated according to the perceived likely threat of terrorism attack and so the cheaper the rates become the more rural the property.
Standard reinstatement cover is available and so are premium options for bigger deductibles.
Other issues to 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 – there could be a police raid on the property or an accidental explosion