In one of the first acts of the new Congress, the House and Senate this week approved NAHB-supported legislation that reauthorizes the Terrorism Risk Insurance Act (TRIA) for six years through 2020. TRIA expired on Jan. 1 and its reauthorization offers stability for NAHB’s multifamily and commercial real estate members by providing affordable and reliable terrorism risk insurance.
In a letter to lawmakers, your Home Builders Association urged Congress to address unfinished business from its previous session by acting swiftly to pass a long-term reauthorization of the program to avoid disruptions to the nation’s recovering real estate markets.
H.R. 26, the Terrorism Risk Insurance Program Reauthorization Act, will ensure that terrorism risk insurance remains available and predictable, thereby allowing the financing and construction for multifamily and commercial buildings to continue.
The legislation was initially enacted in 2002 to provide a federal backstop for insurance companies in the event of a major terrorist attack after many insurers started excluding terrorism events from their policies following the Sept. 11, 2001 terror attacks. The measure was extended for two years in 2005 and for another seven years in 2007.