Should you take out terrorism insurance?
With terrorism one of the most talked-about issues nowadays, more and more people are asking if they should take out terrorism insurance on their business or home, or even when travelling.
While it might not seem an issue the average person should insure against, here's what you need to know, so you can make an educated decision before you buy it.
What should you cover with terrorism insurance?
Terrorism insurance for your business - Nowadays, many business owners are asking if they should buy terrorism insurance, so their business losses and any property damage are covered in the event of a terrorist attack. While many insurance companies will tell you it's necessary, that's only a decision you can make, but there are some factors that can help you decide.
Do you live in the middle of London, or is your business in a small village in Yorkshire? Has your area ever had any terrorist attacks, or had people living in the neighbourhood who've been arrested for involvement in terrorism? Does your business make a product more likely to be targeted, for instance machinery you sell to Israel, or do you own a sweet shop?
Nobody can predict when a terrorist attack will occur or where but, as terrorism insurance is expensive, unless you feel you're in a high-risk area or own a high-risk business, only you can decide if it's worth the cost.
Terrorism insurance for your home - Houses and flats are not generally thought of as being high-risk targets when it comes to terrorism. Some unscrupulous landlords however are asking tenants to pay for terrorism insurance as part of their rent, even when they live in areas that have never been affected by terrorism. Be aware, unless it is actually written in your lease, you are not legally mandated to do so.
If you own your own house or flat, again, it's up to you whether you decide to insure it against acts of terrorism. However, not every act of terrorism is covered under every policy so make sure you read the small print before purchase, to make sure it covers possible events.
Terrorism insurance while travelling - Some travel insurance policies already cover you for injury or travel plans delayed because of acts of terrorism, some do not. If you will be travelling to a high-risk country (Israel, Pakistan, India, Russia, even the United States) however, it may be worth your while taking out separate terrorism insurance.
After all, think of it this way, in a terrorist attack you may not be directly involved or injured but, if you get stuck in a place that's been targeted, for a few days or longer, you could end up having to pay for hotels and to book a new flight home.
Use common sense
As we all know, insurance companies are constantly telling us we should buy this that and the other insurance but, often, it's not remotely necessary.
That's why, if you're being told you should purchase terrorism insurance, particularly by an insurance agent, make sure there's a good enough reason for buying it. Or, you might as well save that money, and take a holiday with it instead.