Many people don’t realize that their homeowner’s insurance policy may not protect them from a possible terrorist attack. Most insurers will not cover damages caused by acts of war or nuclear attacks. Terrorist attacks are a gray area, which many insurers may try to exploit. Nobody has had to challenge an insurance company in court, so there is no precedent on whether or not your homeowner’s insurance policy will cover any damages arising from an act of terror. Some insurers have expressly excluded terrorism from their coverage.

You may be safer if you purchase a terrorism insurance policy. Here are some general guidelines that you should follow to decide whether or not you should purchase a terrorism insurance policy.

Are You a Business or Homeowner?

Congress passed the Terrorism Risk Insurance Act of 2002 shortly after 9/11. This new law was specifically designated to protect businesses in the event of a terrorist attack. However, the new law may not protect homeowners. Some experts (Read more....)