Big break for terror insurance

November 15, 2002

Bill gets backing on Capitol Hill


Inman News Features

Terrorism insurance legislation today breezed through the House of Representatives and is now poised for final Senate action.

The bill would help to address the severe shortage of terrorism insurance coverage that has become an escalating problem since Sept. 11, 2001, holding back many real estate acquisitions, construction projects and other transactions due to the inability to obtain financing.

Under the terrorism insurance bill, federal funding would cover terrorism-related insurance claims for damages above a specified amount. Federal funds would kick in after $10 billion in damages are suffered the first year, $12.5 billion the second year, and $15 billion the third year.

Among those applauding the House for passing the bill were the Building Owners and Managers Association International and the Real Estate Roundtable. "Lawmakers have produced a prudent plan that will be good for the U.S. economy, good for workers and good for investors and businesses that depend on a normally functioning insurance system," said Roundtable President Jeffrey DeBoer.

Copyright: Inman News Service