Following the terrorist attacks of September 11, 2001, insurers backed out of the terrorism insurance market place prompting Congress to create a federal reinsurance risk-sharing program the “Terrorism Risk Insurance Act of 2002” (TRIA), which also mandated that insurers make terrorism coverage available along with its property and casualty lines. TRIA, will expire at the end of 2014 unless Congress reauthorizes it once again. Because of the importance of terrorism insurance coverage to commercial real estate, NAR supports the continued availability and affordability of coverage made possible by the federal backstop program of the “Terrorism Risk Insurance Act” and its extensions.
TRIA provides stability and creates a viable insurance market, with widely available coverage and affordable premiums, at virtually no cost to taxpayers.
Sustaining a viable private market for terrorism insurance depends on the federal backstop.
If TRIA is allowed to lapse the terrorism insurance market in the U.S. will be disrupted and terrorism insurance coverage will be harder to get and more expensive.
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