Terrorism Insurance for Blocks of Flats
Extension to Flats Buildings Insurance
Whilst the terrorism insurance extension comes at a cost it is intended to protect freeholders from their obligations under the lease. If your lease states that you should insure against all normally available insurance perils or provide comprehensive insurance then by not purchasing this extension of cover you may be failing to meet the requirements of the lease.
Since January 2003 terrorism insurance has been offered on an all risks basis including damage caused by nuclear, biological and radiological means. This 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".
If this extension is not selected then the buildings policy will provide no cover for damage caused by terrorist activity.
Indemnity is provided up to the sum insured on the buildings policy and this extends to cover loss of rent / alternative accommodation.
Cover is provided by Pool Re who are the government backed insurer to specifically provide this cover. This extension is only available from us when we provide the main buildings policy.