On Thursday, October 31st, the House Financial Services Committee approved H.R. 4634, the “Terrorism Risk Insurance Program Reauthorization Act of 2019,” introduced by Chairwoman Maxine Waters (D-CA). This bipartisan bill would reauthorize the Terrorism Risk Insurance Program (TRIP) for seven years. The bill did not make changes to the structure of TRIP, but does include a requirement for a study on cyber terrorism, an emerging threat.
TRIP provides a government backstop for insured losses as the result of a terrorist attack, and since its original passage in 2002 has allowed private insurers to keep terrorism coverage affordable and available in the U.S. Terrorism insurance is often a necessity for commercial real estate to get financing, and provides stability to the commercial real estate sector and the economy. The legislation is expected to be voted on by the full House in the near future. The current TRIP will expire at the end of 2020 unless Congress reauthorizes it.
NAR sent a letter of support for the bill to the House Financial Services Committee members, stressing its importance to commercial real estate and the economy. NAR is a Steering Committee member of the Coalition to Insure Against Terrorism (CIAT), comprised of industry stakeholders who are committed to ensuring TRIP's reauthorization before the end of 2020.