The necessity of terrorism insurance is a critical consideration for all RMC directors, particularly those managing properties in major cities. Since August 2014, the UK’s terror threat level has fluctuated between 'severe' and 'critical,' making it essential to evaluate the risks, especially for buildings in urban centres.
In today’s unpredictable environment, preparation is key. Safeguarding one’s home with appropriate insurance is a logical first step. During the turmoil of a terrorist incident, the last thing leaseholders need is the realization that their insurance lacks the necessary coverage.
While skipping terrorism insurance might seem like a cost-saving measure, the potential consequences of such a decision could be severe. Standard buildings insurance typically excludes coverage for terrorist attacks. In the event of an incident, the absence of terrorism insurance could leave leaseholders exposed to substantial financial losses, and RMC directors or managing agents may face significant liability.
Furthermore, some leases explicitly require Terrorism Cover, underscoring its importance. For both legal compliance and peace of mind, terrorism insurance is a prudent choice for properties in high-risk areas.
