Q: Can you advise us on the issue of terrorism insurance? We are a block of 12 flats in south London and we have recently renewed our buildings insurance policy. We were invited to purchase terrorism insurance.
Our block is a self-managing block (although there is a separate private freeholder) in a residential neighbourhood, not close to any obvious terrorism target. Should we take this cover out? If not, can you suggest how we should think about this in order to make an appropriate decision based on our duties as leaseholders and directors?
FPRA Insurance Expert Belinda Thorpe replies:
We recommend terrorism insurance as most mortgage lenders require terrorism insurance to be in place. Where the decision is made not to accept terrorism insurance, we would always recommend that a letter is sent out to all owners advising them of the decision and then collate the responses to show everyone’s approval of their decision.
[Submitted March 2020]