Updating post from Reddit.
With everything kicking off globally would it not be a stupid idea to take out war protection on insurance policies. Does anyone actually offer this?
Short answer is no it is not worth it.
Longer answer is you would have to go to a specialised broker to get the coverage. And they would probably not do it/or the premium would be incredibly high. Almost all war coverage is offered to large companies or marine.
Finally, war coverage still often includes exclusions. For example, there are often NATO article 5 exclusions (if NATO countries go to war) or a ‘great power’ exclusion (if US/China/Russia are involved).
Source: I work in the Lloyd’s speciality insurance market
Do you do volcano insurance?
So what usually happens to landlords? Seems like another big risk hoping that shit doesn't hit the fan but probably needs to be talked about more.
If a war occurs that puts your properties at risk, the least of your problems with be your rentals.
Insurance companies do not have anywhere near the capital to cover a war. It will be up to the government to rebuild.
That is what I was thinking, nuts to have that risk I might as well look to sell.
I saw it advertised ages ago. It's an interesting question, but it’s probably best to stop reading the news for a while and disconnect from the hysteria.
Oh I'm just wondering if there was protection as every policy I see says excludes war/terrorism. I hope we never have to experience it but it would be good to understand what happens.
Direct line do Terrorism protection. Not sure what entails really.
What kind of coverage are you thinking about. I imagine a martial law type directive would override most policies. Also the insurance might be the least of the worries!
I was thinking one in the event the tenants were drafted, 2 in the event the landlord was drafted so mortgage payments might be missed, 3 in the event that bombs are dropped, 4 in the event property is taken over for military purposes 5 pretty much anything that covers mortgage for anything that happens from war.
Gov most likely introduce policies to address that like they did with covid. Payment holidays and grants etc
I don't think they will though looking at ww2 I know things were different but there wasn't really any policy like that from what I can tell. They even came and took everyone's metal such as railings.
People who had property damaged or destroyed in ww2 were compensated by the government. Insurers do not cover war risks, they could not possibly afford them (some European cities were 80 or even 90% destroyed in ww2).
I looked into this a bit more and they weren't compensated as such. What the government did do was help to build new homes. I think they only compensated those that had to give their properties to the army etc.
The homes they built were most likely those temp prefab homes you see all over the country and the people that lost homes would have been given chance to move into them.
There isn't much information on landlords that lost their 2nd homes I guess they were shit out of luck.