The National Association of REALTORS®, along with more than
100 insurance and other organizations, are urging Congress to pass a long-term
reauthorization of the Terrorism Risk Insurance Act, which is set to expire at
the end of 2020. The bill creates a federal backstop for terrorism insurance
and mandates that insurers make terrorism coverage available with their
property and casualty lines.
TRIA was originally enacted in 2002 as insurance companies backed out of
the terrorism insurance marketplace following the Sept. 11, 2001, terrorist
attacks. Congress has enacted several extensions to the program since that
time. In 2015, the program lapsed for 12 days, sparking uncertainty in a
variety of markets. The program is facing another expiration at the end of next
year that has industry groups concerned.
“TRIA fosters certainty in the marketplace,” states a letter from the Coalition to Insure Against Terrorism urging
Congress to support an extension of the bill. “Absent TRIA,
there is not sufficient insurance and reinsurance capital available to provide
comprehensive terrorism coverage to U.S. insurance buyers.”
In the letter, the organizations urge Congress to promptly enact a
long-term extension of the program. “Maintaining a workable federal terrorism
insurance mechanism is vital for our nation’s economic security, and without
adequate coverage, our ability to mitigate further economic fallout in the
event of an attack would be greatly impaired,” the letter states. “There is no
homeland security without economic security.”
—Reprinted from REALTOR®
Magazine Online, September 2019, with permission of the National
Association of REALTORS®. Copyright 2019. All rights reserved.
