Terrorism is the unlawful use or threatened use of force or violence against people or property to coerce or intimidate governments or societies. This can be for the purpose of instilling fear in a section of the public or the public at large. This can be for the purpose of influencing the government.

Until recently fire claims were "always" paid. Insurance was originally set up to cover the peril of fire and it is the most basic coverage. Since the 911 terrorist attack there is a move in the insurance industry to not pay for resulting fire losses after a terrorist attack.

How does this affect you? A realty company with many properties would be an example of someone who might be concerned about this exclusion and should discuss this with their agent or broker. You should check your policies to see if fire resulting from terrorism is now excluded under your insurance.

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