During the 2025 civil unrest in [City Redacted], a Molotov cocktail was thrown into a gallery window, destroying $2M in art. The insurance company invoked the “Terrorism” exclusion, claiming the event was a certified act of terror, which requires a specific (and expensive) rider that the gallery owner had declined.
Key Takeaways
- TRIA is Optional: In the US, the Terrorism Risk Insurance Act (TRIA) requires insurers to offer terrorism coverage, but you have to pay extra for it. Most people check “No.”
- Riot vs. Terror: “Civil Commotion” is usually covered. “Terrorism” (certified by the Govt) is excluded unless bought. The line between them is blurry and decided by politicians.
- Nuclear/Bio is Always Excluded: If a dirty bomb goes off, no private insurance covers the radiation damage to art.
- Urban Risk: If you live in a city center or near a government building, your risk profile is totally different than a rural collector.
The “Why” (The Trap): The Force Majeure Definitions
The definitions are specific.
Riot: A violent public disturbance. (Covered under standard policies).
Terrorism: An act certified by the Secretary of the Treasury to be driven by foreign or domestic interests to coerce the population. (Excluded without TRIA).
If the government labels an event “Terrorism,” your standard “Riot” coverage vanishes.
[IMAGE: Screenshot of a Policy Declaration page showing the “Rejection of Terrorism Coverage” checkbox]
The Investigation: I Called Them
I asked underwriters about the “Riot vs. Terror” distinction in 2026.
1. The Standard Homeowner Policy
- Scenario: Protestors burn the house.
- Verdict: Likely Covered as Vandalism/Riot.
- Scenario: Bombing declared a Terror event.
- Verdict: Denied (War/Terror Exclusion).
2. Standalone Terrorism Policy (Lloyd’s)
- Scenario: Covers Sabotage, Terrorism, Mutiny, Rebellion, Coup d’Etat.
- Cost: Expensive (0.5% – 1% of value).
- Verdict: Necessary for high-profile collections in capital cities.
3. Fine Art Specialists (AXA/Chubb)
- The Edge: They often “write back” some terrorism coverage for art specifically, even if the building policy excludes it.
- Limit: Often sub-limited (e.g., $500k max).
Comparison Table
| Event | Standard Policy | Policy + TRIA |
| Looting during protest | Covered | Covered |
| Arson during riot | Covered | Covered |
| Certified Terror Act | Excluded | Covered |
| Nuclear Fallout | Excluded | Excluded |
Step-by-Step Action Plan
- Check the Box: When renewing, look for the “TRIA” disclosure. It usually costs
100−100−300 extra. Check “Yes”. It is cheap peace of mind. - Define “Civil Commotion”: Ask your broker: “Does this policy cover strikes, riots, and civil commotion (SRCC)?”
- Move the Art: If tensions rise in your city, move the art to a suburban storage facility. Insurance covers “Emergency Removal.”
- Review Loan Agreements: If lending to a museum, ensure their policy includes Terrorism. Museums are high-profile targets.
FAQ Section
Is vandalism by climate activists terrorism?
Currently, insurers treat it as Vandalism (Covered). However, if governments reclassify these groups as “domestic terrorists,” coverage could shift.
Does this apply to cyber-terrorism?
No. Physical damage from a bomb is Property. Data loss from a hack is Cyber.
What if the government seizes the art during martial law?
Excluded. “Seizure by public authority” is almost never covered.