What Are the Advantages of Terrorism Insurance?

Posted on: Sep 24, 2025 | 3 mins | Written by: HDFC ERGO Team

What Are the Advantages of Terrorism Insurance?

Terrorism is a big problem not only for the countries and the governments but also for ordinary people. Today, there is a shift seen in terrorist activities with the focus moved from traditional targets, such as police, military, and government, to civilians. In the past, India has seen numerous such incidents that shatter not only human lives but also disrupt the economy as a whole.

With terrorist activities aimed at civilians, the damage can be very high, resulting in losses of lives and suffering. Even though no insurance policy can replace a human life, adding terrorism cover can at least offer the financial help needed to restart life after such events. Let’s read on to know why this cover is becoming essential.

Can You Insure Terrorism Risk?

Terrorism is a high-severity but low-frequency risk. The terrorist attacks are not often random but purposeful to increase the damage and are designed to create panic. Ideally, all entities, including small and large companies, schools, infrastructural projects, private and government buildings, hospitals, hotels, ports, and stadiums, as well as all business activities, should obtain terrorism insurance or cover for themselves.

This coverage provides financial help in the event of structural damage and other specified events, as per the policy's terms.

Terrorism Insurance in India

Terrorism coverage in India is provided as a part of house insurance, such as in BGR or Bharat Raksha Griha insurance. This is often underwritten under engineering, fire, and property damage.

As mentioned earlier, some home insurance include a terrorism clause, while others charge an additional fee for it as an add-on. The terrorism coverage also includes compensation towards property damage. This means that if insured property, in the event of a property insurance terrorism coverage, suffers any destruction or damage, the insured can claim a settlement from the insurance company.

This includes the building, the structure, and its contents, and the damage can be the result of an act of terrorism, such as arson, bombing, or any other destructive method.

Conclusion

Not all insurance policies offer terrorism coverage. To determine if your policy is eligible, consult the insurance company or review the policy features. Policies, such as BGR, the Bharat Griha Raksha policy, offer terrorism coverage as per the terrorism clause in the policy. The choice of such a policy is that in the most unpredictable and problematic situations, you will have the support you need.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

Terrorism Coverage in Home Insurance Explained

What are the coverage under Home Shield insurance