Standard property insurance cover on a block of flats does not automatically include damage caused by terrorism. The cost to add Terrorism insurance to a policy is relatively low depending on your properties location, with cities carrying the higher risk and therefore seeing the higher premiums.
‘Do I need terrorism insurance’ is a question our sales team are regularly asked and you may find the answer lies within your lease or from your mortgage provider.
The Court of Appeal in the Qdime case (July 2014) upheld that if an insurance clause in your lease includes a requirement to insure against explosion, then this should include explosion caused by terrorism. The ruling made clear that this cover is a requirement of some leases and should be added to an insurance policy.
Some management company’s or leaseholders in a block of flats could object to the inclusion of the terrorism insurance costs within the service charge, however in the QDime case, the landlord argued, and the Upper Tribunal agreed, that the requirement was to insure against the risk of an explosion, regardless of the cause of the explosion.
Explosion is not defined by its cause and therefore, when given its ordinary meaning, explosion could include an explosion caused by an act of terrorism – hence the requirement for terrorism insurance.
For more information on the benefits terrorism insurance from Deacon, take a look at our Product Guide https://www.deacon.co.uk/guides/terrorism/ or contact us on 08000 92 93 94 to discuss further.