House Committee Advances TRIA Extension
The House Financial Services Committee voted 57-0 on a bipartisan compromise that would extend the Terrorism Risk Insurance Act (TRIA) program for seven 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, NAA and NMHC, as part of the Coalition to Insure 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.
NAA and NMHC 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, NAA and NMHC will continue to advocate that any reforms of the program not negatively impact terrorism insurance affordability for apartment firms.