| |
| |
|
Insurance Information |
|
|
|
Terrorism: Acts of Terrorism: When Will Insurance Respond?
Insurance policies provide financial protection in a broad range of circumstances but each type of product specifies certain situations where the policy will not respond. These vary from one type of product to another, and can vary in detail between one insurer and another. It is important to check the details of your individual policy. However the questions and answers below seek to set out the usual approach for each of the main types of insurance. If you have specific queries on your policy you should approach your insurer or broker. Property cover Will my home be covered if it is damaged or destroyed in a terrorist attack? Yes. Household, buildings and contents policies include damage by fire, explosion or impact whether caused accidentally, through the malicious act of an individual criminal or in an act of terrorism. This cover will normally include the cost of alternative accommodation whilst your home is being repaired, typically up to a total of 20% of the sum insured. However contamination cover, whether caused accidentally or through malicious or terrorist activity, is excluded under household policies. In these circumstances the consequential costs such as alternative accommodation would not apply either. Some blocks of flats are insured under commercial, rather than household, policies. Under these policies terrorism damage is covered if the specific top-up cover readily available in the market has been taken up. This can be arranged either at the date of renewal, or added to the policy mid-term. This cover will normally include chemical, biological, radiological or nuclear contamination caused by terrorist activity. You should speak to your broker or insurer to obtain a quote and information on how to buy this additional cover. Why isn't contamination cover included on Household policies? Contamination has been a standard exclusion on household policies since the 1960΄s as the likely aggregation of claims (many homes will be affected by a single incident) and cost of clean-up could not be met by insurers without putting their financial viability at risk. This would not protect the interests of other policyholders. The additional cover available to commercial properties is only possible through the Pool Re Scheme, backed by government. However if the contamination is caused by a terrorist attack on premises containing nuclear material insured by the Pool Re Nuclear Scheme, the third party liabilities towards other people's property would be picked up by this specialist insurer. Is cover available for businesses? What about consequential losses? Yes. You can obtain terrorism cover as an add-on to your property cover and should ask your insurer for a quote, either at renewal or mid-term if you wish to review your situation. This is available on a competitively priced basis, but is associated with your property policy if obtained through the Pool Re scheme, available via most commercial property insurers. Alternatively some terrorism cover is available on a stand-alone basis through the Lloyds of London market. Commercial property terrorism cover is normally provided on an All Risk basis and includes biological, chemical, radiological and nuclear contamination, and the consequential business interruption losses. However it does not include e-risks, nor losses due to hoaxes. Why isn't terrorism cover a standard part of commercial property cover? There is no statutory requirement to have this cover in place. However you should check your contractual requirements, as you may need to put in place such cover to meet your obligations under certain types of contract (for example in leases or loan agreements). You can opt into this cover if you require it by asking your property insurer for a quote and paying the additional premium. Terrorism: Acts of Terrorism: When will Insurance Respond? Insurance policies provide financial protection in a broad range of circumstances but each type of product specifies certain situations where the policy will not respond. These vary from one type of product to another, and can vary in detail between one insurer and another. It is important to check the details of your individual policy. However the questions and answers below seek to set out the usual approach for each of the main types of insurance. If you have specific queries on your policy you should approach your insurer or broker. Property cover Will my home be covered if it is damaged or destroyed in a terrorist attack? Yes. Household policies include damage by fire, explosion or impact whether caused accidentally, through the malicious act of an individual criminal or in an act of terrorism. This cover will normally include the cost of alternative accommodation whilst your home is being repaired, typically up to a total of 20% of the sum insured. However contamination cover, whether caused accidentally or through malicious or terrorist activity, is excluded under household policies. In these circumstances the consequential costs such as alternative accommodation would not apply either. Some blocks of flats are insured under commercial, rather than household, policies. Under these policies terrorism damage is covered if the specific top-up cover readily available in the market has been taken up. This can be arranged either at the date of renewal, or added to the policy mid-term. This cover will normally include chemical, biological, radiological or nuclear contamination caused by terrorist activity. You should speak to your broker or insurer to obtain a quote and information on how to buy this additional cover. Why isn't contamination cover included on Household policies? Contamination has been a standard exclusion on household policies since the 1960΄s as the likely aggregation of claims (many homes will be affected by a single incident) and cost of clean-up could not be met by insurers without putting their financial viability at risk. This would not protect the interests of other policyholders. The additional cover available to commercial properties is only possible through the Pool Re Scheme, backed by government. However if the contamination is caused by a terrorist attack on premises containing nuclear material insured by the Pool Re Nuclear Scheme, the third party liabilities towards other people's property would be picked up by this specialist insurers. Is cover available for businesses? What about consequential losses? Yes. You can obtain terrorism cover as an add-on to your property cover and should ask your insurer for a quote, either at renewal or mid-term if you wish to review your situation. This is available on a competitively priced basis, but is associated with your property policy if obtained through the Pool Re scheme, available via most commercial property insurers. Alternatively some terrorism cover is available on a stand-alone basis through the Lloyds market. Commercial property terrorism cover is normally provided on an All Risk basis and includes biological, chemical, radiological and nuclear contamination, and the consequential business interruption losses. However it does not include e-risks, nor losses due to hoaxes. Why isn't terrorism cover a standard part of commercial property cover? There is no statutory requirement to have this cover in place. However you should check your contractual requirements, as you may need to put in place such cover to meet your obligations under certain types of contract (for example in leases or loan agreements). You can opt into this cover if you require it by asking your property insurer for a quote and paying the additional premium. by George McGonigal George is the proprietor of UK based insurance websites that allow visitors to obtain fast online quotations without obligation, for all types of insurance product. Why not check us out at the following sites. Car Insurance UK: Simple but substantial online directory of top UK Insurers. Car Insurance Scotland: Compare online quotes for residents of Scotland. Car Insurance Northern Ireland: Cheaper online quotes for car insurance.
MORE RESOURCES:
Insurance - Google News |
|
|
|
RELATED ARTICLES
Term Life Insurance - A Safeguard for Small Business Owners Term life insurance can offer protection for a small business and its owners in surprising ways. If you own a small business, you probably pay property and liability insurance, and are protected against fire, theft, flood and other disasters. Cheap Health Insurance - Health Insurance for The Self Employed If you're self employed, you may think of health insurance as a luxury. When you're barely making ends meet, paying several hundred dollars a month for something you may not need isn't a priority. How To Negotiate A Settlement With An Insurance Claims Adjuster You and I. M. Your Cars After-impact Diminished Value The(ACV)Actual Cash Value Policy DOES NOT insure the property itself but the VALUE of the property.Okay let's say the insurance company chooses to "Repair" their insureds damaged property (as is their option within their contract of insurance). Who Sets Auto Insurance Rates? Auto Insurance rates are a complicated business. Have you ever wondered who sets your auto insurance rates and how the rates are actually derived?Many factors determine how much you will pay. Why Should You Purchase Your Auto Insurance Online? If you're interested in slashing your auto insurance bill in half then there's no reason why you shouldn't consider purchasing auto insurance online. Buying your auto insurance online is extremely easy and very convenient. Tips for Buying a New Home My wife and I recently purchased a new home in Tennessee. Here are some helpful hints we picked up along the way:1. Used Car Insurance Every state requires that drivers carry liability insurance. The liability coverage section of an auto insurance policy provides financial protection from liability claims against you when you (or certain other people) cause an accident that results in bodily injuries to other people and/or damage to their property. Do Discount Fees for Medical Service Programs Really Work? Having a health insurance policy provides a great sense of security for many families. Most people with health insurance usually have it through their employer and the employee and the employer may share the responsibility on paying the premium. 7 Sure-fire Ways of Reducing Your Home Insurance Premium Home security improvement:All insurance companies will happily offer you a discount for burglar alarms and smoke detectors. Homes with fire and burglar alarms that communicate with a third party monitoring company receive a higher discount on their insurance premiums. Term Life Insurance on Your Business Partner Life insurance is something we often take out to protect our family and our loved ones, but that's only one example of how life insurance can save us in unhappy circumstances. Businesses also need protection and those with partners realize that if a business partner were to pass away, the business itself could be jeopardized. How to Shop for Individual Health Insurance If you find yourself in the position of shopping for an individual health insurance policy, there are certain things you'll want to keep in mind. Whether you are coming out of a job that covered you before, or are at the end of your COBRA benefits, or simply have never had coverage before there are things you can do to get coverage on yourself and your loved ones. Are Accidents More Likely To Occur Closer To Home? If you are going to be involved in an accident, chances are it will happen close to your home. Progressive Insurance polled 11,000 of its policyholders who experienced accidents in 2001. The Immorality of Guarantee Issue Health Insurance While there are genuine debates about whether privatized health insurance or nationalized health insurance policies make more sense, there can be little doubt that guarantee issue policies represent the most immoral type of hybrid between the two. The argument that everyone should be covered by health insurance is an argument for a nationalized health care policy. Car Insurance Discounts Trying to save money wherever you can is important to us all. Insurance should be no different. Auto Insurance for Young Drivers The biggest worry of most parents today is their children growing up and beginning to drive. They dread having to add them to their auto insurance policy because of the increase in premium. Consumer Driven Health Plans [ CDHP ] Do you know that skyrocketing health care costs have been draining the federal government and employer's exchequers over the last couple of years? The health care costs account for 15.5 percent of U. What is Life Insurance? Life Insurance is an insurance policy that provides an agreed amount of cover over an agreed term, so that should you die during the policy term, a lump sum is paid out. Life insurance is considered as the cornerstone of financial planning. Cure The Insurance Blues By Lowering The Cost of Your Premiums Does the current amount that you pay on your insurance premiums keep you awake at night? If so you're not alone. In today's fast paced society many people are looking for ways to save money unfortunately this can lead to scrimping and watching where you spend every penny you make. Protecting Your Expatriate Family If you and your family relocate overseas, one of your first priorities from a financial planning point of view may very well be establishing health care.Costs and services abroad can differ greatly to what you are accustomed to 'back home'.
|
| home | site map |
| © 2006 |
