I suspect some bureaucratic over-interpretation of the following is at work.
9.5 We will not be responsible for repairing any appliance or item which You have brought in to or arranged to be brought in to the Property.
9.6 We are not obliged to rebuild or reinstate the Property if it is destroyed or suffers damage caused by fire, tempest, flood or other accident. If the Property is no longer habitable then this Licence shall terminate immediately on the happening of such an event.
In the event of a no fault car 'occurence' you are expected to claim on your own insurance policy and you insurer will manage the claim against the other party, surely the same applies here - the licence advises you in the strongest terms that it is your responsibility to take insurance to protect your own property.