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Terrorism Insurance -Insurance That Provides Terrorism Cover Too !

Updated on May 23, 2011

Insurance for Terrorism - Why Terrorism Insurance?

Terrorism Insurance is a one way to get prepared to respond to a terrorist attack. It is a way to recover rapidly from the damage caused by terrorism. Terrorism insurance policy is a kind of security that an insurance company delivers when individual or organizational property gets damaged, destroyed because of terrorist attacks.

Why Terrorism Insurance?

The threat of terrorism creates an uncertainty that further damage the growth and stability of the economy. A report says that the insured losses resulting from terrorist attacks are the largest insured loss in world history. People, who live in a country which is more likely to get affected by terrorist attacks, do need terrorism insurance policy. More than 3,000 people from near about 90 countries were killed in the terrorist attack of September 11, 2001. The insurance industry plays an important role in helping these people.

Insurance Policies that offer Terrorism Cover

Terrorism Insurance is a complex matter and terrorism cover is not offered as a stand-alone option. An insurance policy against fire and explosion has to be taken out as primary policy. These insurance policies include coverage for losses that happen as a consequence of an act of terrorism. They provide property cover if your home will be damaged in a terrorist act. Household, buildings and contents policies comprise damage by fire, explosion, whether caused accidentally or in an act of terrorism.

They supply financial protection in an extensive range of circumstances; however, every kind of product specifies certain conditions where the insurance policy will not respond. Terrorism cover can be obtained as an add-on to the property cover. Most commercial property insurers provide terrorism cover, which is usually offered on a risk basis and also incorporates biological, radiological, chemical and nuclear contamination.

Terrorism Risk and Insurance Covers

Travel Insurance for Terrorism

Travel insurance products also provide terrorism cover. In fact, there is an increase in travel insurance sales due to terrorism scares. If you are on a holiday and get injured due to some terrorist attack than your entire medical expenses will be covered by your Travel insurance policy. Travel insurance policy promises to pay for the un-reimbursable facets of the vacation. If the holder of the travel policy has to delay, or cancel a planned journey due to terrorist acts in the destination, then the cost of meals and hotel stays would be covered.

The point to note is that a travel policy does not cover the fear. If the holder cancels prior to the trip due to fear of a terrorist attack that might happen then most of the insurance companies would not give any coverage. Some travel insurance companies have the option "cancel for any reason" which offers partial refund of up to 75% of prepaid tour costs.

The risk of terrorism and civil disturbance in the destination you are traveling should be checked as the terrorist events which involve biological, nuclear or chemical weapons are not covered. Check the level of cover you require from your travel insurance. One must read carefully the policy wording or small print of your travel insurance for all details and the exclusions that may apply.


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