Terrorism insurance questions

[Account Closed]

I own an apartment complex and every year I have the option of adding terrorism insurance to my coverage. I always decline, but I am wondering what you guys do. I admittedly haven't read the fine print on it, so I'm not really sure what I'm missing out on. The reason I have been thinking about it is the rioting going on in Missouri. If something like that happens and they burn the place down would that be considered terrorism or just regular arson?

[Eric Belgau]

@Account Closed TRIA (the Terrorism Risk Insurance Act) creates something of a federal insurance program for certified acts of terror.  For that coverage to be in force, the federal government must identify the cause as a terrorist act, which triggers all kinds of other things.

As a result, insurance companies specifically exclude terrorism on their policy forms.  Terrorism insurance is automatically added, and you pay a premium for it.  You have the option of rejecting coverage, which many people do.

Riots aren't acts of terror.  They're a form of civil unrest.  Your regular insurance will normally cover losses from war or civil unrest.