Delaware Real Estate Law Update: Reauthorization of Terrorism Risk Insurance Act
January 9, 2015
Publication| Real Estate Services
On January 8, the United States Senate passed H.R. 26, the “Terrorism Risk Insurance Program and Reauthorization Act of 2015,” which had already passed in the House of Representatives the previous day. The bill will now go to the President for his signature. The legislation extends by six years the terrorism insurance program, which has been in place since the 2001 terrorist attacks in New York City and had expired on December 31, 2014. In addition, the legislation increases the insurers’ co-payment and gradually increases the program’s threshold for the federal backstop. The passage of this legislation is a victory for the business community, which would have faced significant uncertainty if the private insurance marketplace no longer had a federal reinsurance program in place.