Buildings insurance
Terrorism cover is a line on the schedule, not an assumption.
Check whether the policy includes or excludes it, what definition and limit apply, and whether the lease or a particular lender creates a requirement for the building.
Read the current policy
Find the answer in the schedule, wording and endorsements.
Included, excluded or silent?
Locate the terrorism section or exclusion and any policy-specific endorsement. Do not infer cover from the name of the buildings policy.
Which event triggers the section?
Read the policy definition, territory, certification requirement and any separate treatment of war, cyber or non-damage loss.
What property and limit are insured?
Check the building description, declared value, limit, excess and any sublimit against the rest of the property policy.
Who carries the policy risk?
Pool Re is a reinsurer and does not insure the building directly. The policyholder buys cover from an insurer, often through a broker.
Why might it be needed?
Test three sources before the renewal decision.
What must the landlord insure?
Read the insured-perils covenant, any discretion and the service-charge recovery wording. A phrase such as usual risks still needs applying to the actual document and market.
Does a particular mortgage require it?
Use the applicable lender instructions or written requirement. Do not turn a statement about some lenders into a universal mortgage rule.
What has the broker assessed?
Ask how location, use, insured value and threat information affected the recommendation and price.
Who decides and on what authority?
Record the recommendation, alternatives, lease position, cost treatment and instruction to the broker.
Broker brief
Put six questions in writing.
Is terrorism currently covered?
Ask for the schedule, wording and endorsement that establish the answer.
What exactly is covered?
Request the definition, property, limit, excess, territory and material exclusions.
Is Pool Re involved?
Ask whether the insurer is using Pool Re reinsurance or another arrangement and whether that changes any term for the policyholder.
What would adding or removing cover change?
Get the price, tax, cover difference and any effect on the wider placement in writing.
Which lease or lender requirement was checked?
Ask the broker to state the document or instruction relied on instead of giving a general market answer.
What must happen after an incident?
Confirm notification, evidence, emergency action and the route by which a potentially covered event is handled.
Sources for this page
Open the law and guidance yourself.
Pool Re explains that it reinsures member insurers and does not provide cover directly to policyholders.
↗Current market changePool Re scheme modernisationThe April 2025 move to a modernised treaty model and the additional underwriting flexibility given to member insurers.
↗Related guideInsurance scheduleRead the certificate, schedule, wording, endorsements and renewal record together.
→Related guideBuildings insuranceConnect the lease covenant, policy, disclosure and claims record.
→Links and current-law position checked 18 August 2026. Apply the governing documents, building facts and current law to the case in front of you.
Take the next step in LEASE-iQ
What must be insured, by whom and at whose cost?
Use this for buildings insurance, policy schedules, excesses, terrorism cover or a claim route.
Keep checking: The lease sets obligations. Only the current policy and insurer can establish the cover actually in force for a claim.
