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 of 2002” and its extensions.
The program 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 expire at the end of 2014, or if there is even a threat that it might, the terrorism insurance market in the U.S. will be disrupted (as illustrated by the lead-up months to the reauthorizations in 2005 and 2007), and terrorism insurance coverage will become both more limited and more expensive.
On Thursday, July 17, 2014, the Senate approved S. 2244, the Terrorism Risk Insurance Program Reauthorization Act of 2014, by a vote of 93-4. This strong show of bipartisan support for the program follows NAR sending a letter to the Senate and conducting a “Call for Action” among its members urging Senators to support this bill when it was voted on. In June, the House Financial Services Committee approved its version of a TRIA reauthorization bill, H.R. 4187.
NAR will continue to monitor this issue and advocate for a quick and smooth reauthorization of this program which provides such important protections to commercial real estate.