The terrorism insurance extension is intended to protect freeholders from their obligations under the lease however it does come at a cost. By not purchasing this extension of cover you may be failing to meet the requirements of a lease that states you should insure against all normally available insurance perils or provide comprehensive insurance.
From January 2003 onwards terrorism insurance has been offered on an all risks basis. This includes damage from nuclear, biological and radiological causes. The cover is designed to reflect the perceived danger of contamination caused by terrorist activities i.e. the fall out from a so called “dirty bomb” and is provided by Pool Re, a specifically chosen government backed insurer.
Indemnity for an act of terrorism is provided up to the sum insured on the buildings policy and this extends to cover loss of rent / alternative accommodation. However, the terrorism extension is only available from 1st Sure when we provide the main buildings policy. If this extension is not selected, then the buildings policy would provide no cover for damage caused by terrorist activity; other than the reduced limits for Public / Property Owners and Employers Liability.
If you would like any further help or advice regarding flat insurance for converted buildings or a block of flats then please get in touch and let 1st Sure Flats’ dedicated team help. You can contact us by calling 0345 370 2842, email us at info@1stsure.com or if you’d like to get a free quote then just click here.
