This seems incredibly misguided and really makes me question the entire ranking. It's one thing for the populace to irrationally fear terrorist attacks, it's another thing to codify that fear into an actual ranking without considering the vanishingly small chance of being affected.
The likelihood of you being a victim of a terrorist attack in any western city is negligible. It should simply not be a factor in considering where to live, full stop. The ranking doesn't include the percentage chance of an air conditioner falling on you, so it shouldn't consider terrorism.