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Assetsure News 17th September 2007
Terrorism –
Insurance Cover Update
One of the things we are always being asked at Assetsure is whether Terrorism
cover is included under a standard
homeowner’s insurance policy. Policyholder’s
views towards whether to request this cover or not are pretty much governed by
what part of the country they are located in. Owners of
listed building are particularly interested
in this type of cover because of the sever delays that can occur when a listed
building is damaged and approval has to be sought before restoration work can
commence.
It is worthwhile checking your home policy wording but most co9ver will
include cover (fire explosion whether caused accidentally through the
malicious act of an individual criminal or in an act of terrorism. If you
property is damaged, cover will usually be extended to include alternative
accommodation cover. However a couple of things to watch out for.
1. Biological
and Chemical Contamination cover is excluded from a standard home insurance
policy. Thus if your property is damaged as result of this or you have to move
out for a period of time, no cover will be in force
2. Blocks of flats which are insured under a
commercial policy wording than a household
wording will offer this cover as a top up. Unless you ask it may not always be
apparent under which basis you are covered. As a pointer, small blocks,
particularly conversions are often covered under household policies. Bigger
purpose built blocks of flats are insured
under a commercial wording. However, there is no general rule and you should
always ask. Top up Terrorism is usually available at inception or renewal of
the policy and premiums are calculated depending on what area you live in.
This extra top up cover will also include the chemical contamination cover.
Many people ask when the chemical and biological contamination cover is not
included under the standard household insurance policy; contamination cover
has been excluded from homeowner policies for over 30 years. The reason for
this is that insurers believe that the aggregation of claims ( many homes not
just one are likely to be effected by this type of incident) and the cost of
the clean up operation would jeopardise the financial standing of some
insurers and this would not be fair on other home insurance policy holders who
do not live in effected areas
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Copyright Assetsure Limited 2007
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