In the last 10 years, the idea of terrorism has begun to plaque the minds of homeowners across the states. We have faced the Boston Bomb, Richmond Hill Explosion, 9/11, and more over the period of time, and consumers are beginning to wonder if their Homeowners Insurance covers terrorists attacks. Here is what you need to know about homeowners insurance and terrorist attacks:
Are you covered?
In most cases, a homeowners insurance policy should cover the damage caused by a terrorist attack. There are several states that have even banned insurance companies from excluding terrorist coverage from their policies. These states include Texas, Florida, Pennsylvania, Ohio, New York, and Massachusetts. While these are the only 6 states with the exclusion ban, many other states will rule in favor of the homeowner if it would go to court. The only times it would not appear to be ruled in favor of the Homeowner would be if the policy has a terrorist exclusion statement. Terrorism generally falls in somewhere between war and civil unrest
What’s not covered?
Property damage from war is not covered by insurance. War is not determined by a direct declaration by congress. It is generally defined by damaged caused by war or warlike actions caused by military associated forces or personnel. This helps a homeowner argue against terrorism being a cause of war due to the fact that most terrorist result from a religious group or an individualized group of civilians with minimal to no connections to military. Along with war, nuclear and chemical hazards are not covered by insurance.
What to do?
In 2001, 9/11 resulted in more than $30 billion insurance claims. In fear of this reoccurring, insurance companies began to exclude terrorism in business and home insurance claims from their homeowners and business policy coverage. Much of the support behind your house being covered in case of terrorism damage is the exclusion of a exclusion clause.
Reviewing your Homeowner Insurance policy is always a wise thing to do. Spend an hour learning what your policy does and does not include. When specifically looking for terrorism, be sure to check the exclusion policies. Ambiguity with terrorism is going to work in your favor in most court instances.
If you are wary about not knowing, then you can talk to an insurance agent about whether you are officially covered or not in the instance of a terror attack. They will be willing to break down the Insurance jargon for you and put it in lame-man’s terms. If he tells you, you are not covered for terrorist attacks, I recommend not worrying about it. The cost of terrorism insurance would not be worth the small chances of having a terrorist attack occur on your home.
As fear rises in America with the threats of ISIS and the occurrence of Richmond Hill Explosion fresh in everyone’s mind, a curiosity of whether their homes are covered by their policies in a terrorist situation. While the facts lean more toward yes, most cases will still have to be determine on a case to case basis. If you are not covered, there is little to worry about as the chances of your house being hit by a terrorist attack are still low.