U.S. Congress Considers BOMA-Supported Terrorism Risk Insurance Extension
On October 11, the U.S. House Committee on Financial Services introduced the Terrorism Risk Insurance Program Reauthorization Act of 2019 (H.R. 4634)—a 10-year reauthorization of the Terrorism Risk Insurance Act (TRIA). TRIA is an effective, low-cost program that has broad popularity in Congress. After some pushback, we believe we have reached a compromise agreement for a 7-year extension of TRIA. Originally enacted in 2002, the TRIA program was reauthorized in 2005, 2007 and 2015. Without congressional action, the program will sunset at the end of 2020.
TRIA coverage is required for commercial real estate lending, making it a necessary component to transactions. After the events of September 11, 2001, most insurance markets were unable to predict or price terrorism coverage. Enacting TRIA in 2002 made the coverage available to commercial real estate, as well as healthcare, stadium and research facilities.
The Coalition to Insure Against Terrorism (CIAT), of which BOMA is a member, issued a letter in support of H.R. 4634, and urges Congress to promptly act on this bill. BOMA and the rest of CIAT are working hard to get TRIA reauthorized as far ahead of the 2020 expiration as possible.