The House Financial Services Committee voted 57-0 on a bipartisan compromise that would extend the Terrorism Risk Insurance Act (TRIA) program for 7 years, require a study on the cyber terrorism market and expand an ongoing study to also determine the availability and affordability of TRIA coverage for places of worship. In advance of the vote, NMHC and NAA, as part of the Coalition to Insurance Against Terrorism (CIAT), sent a letter of strong support to the Committee urging passage of this legislation. The legislation must be considered by the full House before being sent to the Senate for consideration.
Reauthorizing the program, which is set to expire in December 2020, is a top priority for the apartment industry. Many apartment owners, operators and developers are required by their lenders to secure terrorism risk insurance as part of their effort to protect the underlying loan yet are often unable to secure that coverage exclusively through the private sector.
NMHC and NAA will continue to press Congress to quickly advance this, or similar legislation to reauthorize TRIA, well in advance of its expiration so as to avoid disruption in the real estate marketplace. Additionally, NMHC and NAA will continue to advocate that any reforms of the program not negatively impact terrorism insurance affordability for apartment firms.
For background on TRIA and more information on the industry’s advocacy work, click here.