October 15, 2001—BOMA reports that the terrorist attacks of September 11 will also have important implications for the commercial real estate insurance industry. One of the major questions is whether insurers will be willing to provide affordable insurance for terrorist attacks in the future In addition there is question whether any future terrorists attacks will be defined as terrorism or “acts of war”—which insurance policy do not protect against.
Already, says BOMA, insurers are moving rapidly to eliminate coverage related to terrorist attacks in property policies coming up for renewal.
BOMA International has joined with a coalition of other real estate associations and the insurance industry to address these concerns. Legislation will be introduced soon that will call on the federal government to serve as the “provider of last resort”—similar to the role the federal government plays in providing flood protection. BOMA will be drafting a model letter for interested members to send to legislators. For more information, contact BOMA.
