First, it was duct tape and plastic sheeting. Now, insurers are fielding questions from customers wanting to know if their homes and cars will be covered if there´s a war or terrorist attack.
It depends on what kind of an attack it is and the degree of damage. State Farm, the nation´s largest auto and residential insurer, has started mailing its California customers vehicle renewal notices telling them that it doesn´t cover losses stemming from nuclear attacks.
Before, its policy said only that acts of war weren´t covered. Similar exclusions have been standard in the industry since the Cold War. Meanwhile, the American Insurance Association says that most standard property insurance will cover isolated acts of terrorism, such as damage from a fire.