9/11/2012 11:52 PM

Terrorism Insurance

Terrorism coverage is offered by most insurance companies but very few business owners and individuals have selected any amount.  Terrorism insurance provides coverage to individuals and business for losses due to acts of terrorism.

Homeowners’ insurance policies include coverage for damage done to personal possessions, even though it’s usually not referenced.  The policy does cover loss due to explosions, fire and smoke, caused by a terrorist attack. Condo, co-op’s, and renters personal possessions are also covered; however damages due to the common areas of the building such as the roof, basement, and boiler would only be covered if the property owner has purchased terrorism coverage. Auto insurance policies will cover a car that is damaged in a terrorist attack only if the policy holder has purchased comprehensive coverage. Life insurance policies do not contain terrorism exclusions, but proceeds will be paid to the beneficiary as stated on the policy.  Health and disability insurance may cover loss of life, injury or sickness to individuals in the event of an attack.

For businesses, terrorism coverage is generally offered separately at a price that reflects the current risk. There are restrictions in personal and commercial insurance policies regarding war coverage.  War-risk exclusions are deemed uninsurable and no formal declaration of war by Congress is required.  Nuclear, biological, chemical and radiological attacks are also uninsurable due to the nature of the risk. Property damage to a commercial building from a terrorist attack also may include claims for business interruption.   This covers financial losses when a company is forced to suspend their operations due to damage or limited access to an area after an attack.

For more information call Brooks Waterburn at 888-997-9801 or check out our website: www.brookswaterburn.com

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