In late September, both the House Financial Services Committee and the Senate Committee on Banking, Housing and Urban Affairs held hearings to begin discussion about the reauthorization of the Terrorism Risk Insurance Act (TRIA), which provides a federal backstop for insured losses resulting from acts of terrorism. TRIA is set to expire December 31, 2014, and policyholders have been working to educate members of both houses on the need for the program and the certain disruption in the housing market that will result if the program is allowed to lapse.
NMHC/NAA submitted a letter for the record at both hearings.
TRIA was first enacted after the events of 9/11, when the private market for property coverage for terrorist acts ceased to exist. The program sets up a risk sharing arrangement between policyholder, insurance carriers and the federal government. Originally designed as a temporary program, it has been extended twice given the lack of private market appetite to provide this type of coverage.
Three pieces of legislation to extend the program have been introduced in the House by Rep. Grimm (R-N.Y.), Rep. Capuanao (D-Mass.) and Rep. King (D-N.Y.). No one has introduced a bill in the Senate yet. It is expected that this effort will not move quickly given the objections by some lawmakers over the federal role in providing insurance.
NMHC/NAA continue to work in partnership with the Coalition to Insure Against Terrorism (CIAT) to advance an extension of the program.
- Senate Takes an Early Look at Terrorism Risk Insurance Reauthorization
- Coalition Letter to Senate Banking Committee Regarding Terrorism Risk Insurance - June 2019
- Multifamily Industry Applauds Terrorism Insurance Passage
- NMHC/NAA Applaud Passage of Terrorism Insurance by Congress
- Congress Goes Home Without Renewing Terrorism Insurance