Terrorism Insurance for London flats

Whilst it is a difficult scenario to envisage, London has long been regarded as one of the most susceptible locations in the UK for potential terror attacks. And, in a day and age where the unexpected has become the norm, it is wise to protect yourself against all possible avenues. Our Terrorism cover protects your property from terror damage that is not covered by your standard Buildings Insurance policy.

    • 12-month policy: Simply renew each year alongside your Buildings Insurance.

    • Added an an additional to your Buildings Insurance premium.

    • Protects against fire, explosion and terror damage.

Whilst terrorism is a harrowing topic, it is a real threat. Terror threat levels in the UK have been fluctuating between ‘severe’ and ‘critical’ since August 2014, with the capital and provincial cities being considered at the highest risk. It has never been more important to be aware of how to protect yourself against the unexpected and being aware of how to protect your home is a logical place to start.


How do I know if I need Terrorism Insurance?

The Council of Mortgage Lenders states that insurance needs to be arranged in accordance with the requirements of your mortgage lender. In short, check your lease. It will tell you whether a Terrorism Insurance policy is a requirement for your property. If it is, you are legally obligated to ensure you have Terrorism cover in place.

As a rule, Buildings Insurance policies generally do not include protection against any damage caused by a terror attack. To obtain this protection, you must have Terrorism cover added as an additional to your standard Buildings Insurance premium.


Pool Reinsurance Company

Our policy is underwritten by Pool Reinsurance Company, (Pool Re for short). Within the insurance industry, they are by far the largest provider for UK Terrorism Insurance policies, and are backed by funding from Her Majesty’s Treasury.

Pool Re were established in 1993 as part of a government response to the market failure following the Baltic Exchange bombing the previous year. Since then, they have paid out claims of more than £600 million, with no cost to the UK taxpayer. Currently, they underwrite £2 trillion worth of property cover against terrorist damage – a sum which stresses how necessary Terrorism cover really is.


Why are Terrorism Insurance policies important?

It is often the case that UK Terrorism Insurance policies for flats are perceived to be an opportunistic product. Whilst understandable, this approach is often mistaken.

To entertain a different perspective, what would happen if Terrorism Insurance did not exist? It is possible that any damage caused by terrorist activity would be absorbed into the standard residential Buildings Insurance policy. Whilst this may seem like a viable option, it would mean Buildings Insurance prices would sky-rocket – alongside already ballooning house prices, this would be disastrous.

It would also undoubtedly be the case that finding a moderately-priced Buildings Insurance policy around London would become a thing of the past. This would create holes in the insurance market for false, ‘cheap’ policies which wouldn’t offer adequate protection against any damage at all, terror-related or otherwise.

There are also many residents who believe that the effects of terrorism will only ever apply to those in the capital. Terrorist attacks in the past, however, have also taken place in many different locations aside from London. So, should insurance companies therefore only offer Terrorism Insurance policies to those they deem at the highest risk? This poses an enormous problem in itself – terrorist damage is entirely unpredictable, and should an attack occur in a provincial city (as it often has in the past), who would be held liable for the lack of terrorism insurance in place?

Terrorism will never be an easy topic to talk about, and it is unlikely to be the first thing you think about when insuring a block of flats. However, when seeking comprehensive protection against the unexpected, Terrorism cover for your flat is often a necessary addition. It is a staple of the British insurance market, without which, as seen in 1992, the industry would surely splinter.


How do I obtain a Terrorism Insurance policy for my property?

Terrorism cover for your block can be added as an extra to your Buildings Insurance premium. We can also provide a stand-alone Terrorism Insurance policy if you are insured with another Insurance Company.

To get a quote, please contact us with your postcode and the Declared Value (or Sum Insured if this is not stated) shown on your current insurance policy.

Contact us to get your free quote