Everything You Need to Know About Home Insurance Against Terrorism

The recent ISIS attacks on Paris, from over a week ago, has left people from all over the world devastated. This inhuman attack has also unified people from all walks of life who are now coming together to show their solidarity for the grief-stricken country while also condemning the terrorist outfit.

In the aftermath of the attacks, the French government led by President Francois Hollande also launched several offensive measures to bring the culprits to justice, having already killed all the individuals that were part of this gruesome assault. The attack claimed over 120 innocent lives while injuring over 180 or so more people.

But the worst part about such an incident in not simply the attack itself, it is rather the uncertainty over the occurrence of such gruesome attacks in future.

For the Indians, however, it felt like a repeat of the 26/11 attack on Mumbai. Judging by such incidents, we can safely say that no amount of preparation can prepare us for the after effects of attacks like these.

More and more attacks happen sporadically and you can never know when a locality near you or the one you live in might play witness to such barbaric encounters. This is precisely why you should have a home insurance against natural disasters and terrorist acts — to safeguard your most important asset, your home.

Care to know more about what they are? Go on.

So What Is Home Insurance Against Terrorism?

It is a type of insurance, under the home insurance bracket, available for property owners to cover the costs of potential liabilities and losses incurred due to a terrorist act. It acts as an additional cover to protect your home against any structural or fire damage of your property.

This type also comes as an addition with other insurance like motor, health and life insurances too. But there are only a few insurance companies that offer this benefit, which a large number of them are still warming up to the idea.

What Are Some of the Important Features of Home Insurance Against Terrorism?

Just like every other insurance policy, this type too comes with a number of distinct features.

1. It is an add-on cover generally available with your regular home insurance. Provided that you pay the premiums listed by the insurance provider, you can get a terrorism coverage for your abode.
2. You can choose the sum insured amount based on your requirements. For instance, you can choose to safeguard your building structure or you can have your entire house along with valuable possession insured. You should also note that if you choose the latter, you might have to pay considerably higher premiums.
3. Such a terrorist cover can only be taken along with other property and structural coverages.
4. The premiums you’re required to pay are directly proportional to the location and the risk factor involved with your property.
5. When you make a home insurance comparison, you’ll find that the maximum covers offered with a terrorism cover vary from insurer to insurer.
6. The sum insured can pay for property loss and other drastic lifestyle changes directly linked to the attacks.
7. There are several policies with varying terms and condition. For instance, some online home insurance policies offer cover for 10 years for the structure, 5 years for the contents of the property, and 5 years for both the contents and the house.

Can You Find Any Specific Home Insurance Policies Against Terrorism?

As mentioned earlier, this is just a cover that can be availed of with your usual home insurance policy and at present there are no standalone home insurance policies against terrorism. But you can expect a few in the future as the Insurance Regulatory Development Authority (IRDA) is considering to raise the terrorism insurance settlement pool and raise the cap on claims.

What is the Cost Of a Cover and How Can One Make a Claim?

Ideally, a terrorism cover could cost you about 10paise for INR 1,000 of the sum insured for a residential property. If you want to make a claim you will need to submit an application with the rough estimate of the losses you’ve incurred after which the insurance company will send a surveyor to officially assess the damage. The claim is settled once the surveyor submits their report to the concerned authorities.

There you have it, now that you’ve read everything that concerns a home insurance against terrorism, you can go ahead and shop for a policy that suits you better. But before that make sure to review several home insurance quotes and do extensive research.