Why am I insured against terrorism?

Acts of terrorism are excluded from the buildings policy and as such a separate policy needs to be placed.

Often when people think of terrorism, they think of bombs going off in the street (often a car bomb or suicide bomber) and usually these are targeted at busy locations (such as public transport as with the 2005 attacks in London). However, there are other situations that can occur with residential risks, and it’s worth considering the below examples:

A tenant in a flat that is rented out who unknown to the homeowner is a suspected terrorist experiments / builds bombs in their own flat.
An aircraft brought down by terrorists lands on or near the building.
Residents in the building may be the target of terrorists - vivisectionists, politicians, scientists in involved in controversial genetic research etc.
A random attack from an individual/group who are disturbed/discovered via an attempt to attack more high-profile building and choose a lower profile residential building due to the lower levels of security compared to public or government buildings.

It is often a requirement of most mortgage lenders that terrorism insurance in place. The Royal Institute of Chartered Surveyors (RICS) guidance states that “serious consideration should be given to the taking out of terrorism insurance” to “protect the parties as far as reasonably possible from unexpected liabilities”.