Do You Need Terrorism Coverage?
Small owner-occupied dwellings, and residential housing in general, are not considered at high risk for terrorism. But the insurance industry — hard hit with claims after the September 11 attacks and the anthrax scares — started excluding coverage for losses due to terrorism from all insurance policies. Congress responded by writing the Terrorism Risk Insurance Act, which specifically gives property owners the right to buy coverage for a reasonable rate. It's entirely optional. The act also protects landlords from punitive damages unless the person injured can prove that you encouraged the terrorist act.
The U.S. Patriot Act requires landlords to cooperate with the FBI if they are conducting a terrorism investigation that involves a tenant if so ordered by a U.S. magistrate. The Patriot Act protects landlords from being sued by tenants if they “furnish information, facilities, or technical assistance in accordance with a court order or request for emergency assistance under this Act.” For more information go to the FBI website at
