What you are and are not covered for with your travel insurance has always been debatable.It is so easy to just purchase any travel insurance in offer assuming that you are covered for any eventuality. Wrong! You need to read your travel insurance policy thoroughly checking the smallest detail and any writing to find out what you are actually covered against. I usually find that the tiny writing, which I need a magnifying glass to see these days, is the most relevant and important.
Policies have always had many exclusions, ‘Acts of war’ being amongst them. Defining acts of war and terror is quite difficult. You also need to consider what it is about the said acts of terror that you are or are not covered for?. It may be that any mishap which has some link to terrorism may not be covered. Alternatively you may still have cover for your luggage for example.
There is only one answer, research the subject of travel insurance and terrorism before you purchase your insurance. Some companies are always more open and less restricted than others. Find out what you can about the country that you are visiting and your mode of transport. These may have a bearing on how comprehensive your travel insurance will be. Some countries will always be far more dangerous than others. When you do purchase your travel insurance policy read it fully to make sure that you have bought what you were promised. If not go back and change it as soon as possible.
Personally I would always say do not be silly and put yourself at risk unnecessarily by visiting a country torn apart by terror, unless you really have to. Of course there may be times when due for example to family or work commitments you have no choice in your destination. Having said that terror is on the increase and much more widespread so it could happen to you anywhere. It is not that long ago when London experienced regular terror attacks and bombings related to ‘The Troubles’ in Ireland. However, with just about anyone and any place being a potential target, I feel that policies which cover us in the event of terror will soon be a thing of the past altogether.