Tempting, isn’t it, when considering renewal of your residential buildings insurance,
to leave out terrorism cover. It may seem to be one of those extras you should have, but could just as easily avoid to save costs to the residents. After all how could your property possibly be at serious risk of being a target for terrorist attack!
Unfortunately, as with so many things in life, it isn’t quite that simple.
Have you considered that the terrorist threat could come from a far less obvious source. For example, where bomb makers live – explosives are unpredictable and bomb makers don’t appear labelled for the purpose!
There is also a very real threat to possible targets in their own homes – letter bombs, biological weapons or powerful explosives designed to destroy the property with the target inside.
Maybe you are thinking that no-one in your residential apartments is likely to be a bomb maker or a target for terrorism, but how certain can you be?
However unlikely, if an incident occurs and there was no insurance in place, the directors would be seen to be responsible and where would, say, £250,000 come from?
Remember, directors have personal responsibility for their decisions and actions within the Residential Management Company. Are you paid to risk your personal assets?
So, is not having terrorism insurance worth the risk to your Company’s directors?
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