September 14, 2004
Feds Extend Terrorism Insurance Back-up Coverage
It was in November 2002 that President Bush signed the Terrorism Risk Insurance Act (TRIA) into law. The purpose of TRIA was to enable property and casualty insurers to make widely available affordable and comprehensive terrorism coverage to building owners, including community associations.
The underlying problem was the inability of anyone to assess the true risk of a terrorist attack. According to the Community Associations Institute (CAI) and the insurance industry, the difficulty of accurately determining risk potential, because so few incidents had occurred, hindered the ability of insurance providers to generate accurate risk assessments and to price terrorism insurance accordingly.
Posted by Tom Troceen