Most lenders require apartment owners to carry terrorism risk insurance. Prior to the 9/11 terrorist attacks this was not a problem. However, after the attacks, private carriers began dropping terrorism coverage from their policies.
In an effort to fill this critical void, Congress passed the Terrorism Risk Insurance Act (TRIA), which provided a federal backstop for insured losses resulting from acts of terrorism. NMHC supports an extension of the Terrorism Risk Insurance Act until private markets recover enough to meet the demand.