Royal & Sun Alliance (R&SA) is set to warn policyholders that it will not cover them for terrorist attacks.
Royal & SunAlliance (R&SA) is set to warn policyholders that it will not cover them for terrorist attacks.
The company's warning follows a recent announcement from rival Norwich Union, which sought to "clarify" that policyholders are not covered for terrorist weapons such as chemical, biological and nuclear attacks.
R&SA is due to write to policyholders in the spring. A spokesman said insurers were unable to offer protection against weapons of mass destruction.
"This is a market movement," he said. "We are aware that other insurance companies have been telling their policyholders [about the exclusion] and we will be doing it in the second quarter of the year."
Norwich Union claimed last week that it began writing to policyholders six months ago to warn that only "traditional" terrorist attacks would be covered.
A spokesman said: "If someone parks a car bomb outside your house then you are covered, but if it contains biological spores then you are not."
The companies have made it clear, however, that the situation is different for commercial customers.
An NU spokesman said: "Since 1 January we have offered business the chance to buy all-risks cover that will protect them against all forms of terrorist attack."
