Dive Brief:
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Congress last week voted to renew the Terrorism Risk Insurance Act, which expired on Dec. 31 after former Sen. Tom Coburn, R-OK, raised an objection that doomed its passage.
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Coburn retired at the end of the year for health reasons, leaving his objection moot. The House and Senate each voted to extend the 12-year-old act for six years, which guarantees that the federal government will back up insurance companies in the case of a terrorist attack that causes more than $100 million in damages.
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Supporters, including the National Association of Realtors, have said without the act, organizations that build large venues like convention centers and sports arenas would be at risk of financial ruin. The legislation was the first to be passed by the new Congress.
Dive Insight:
President Barack Obama is expected to sign the legislation to reauthorize the TRIA, and without which most insurance companies would be unlikely to offer terrorism coverage at all. Without that insurance, according to supporters of the act, construction of large venues would likely stop,.. and even some high-profile public events might be canceled.
National Association of Realtors President Chris Polychron issued a statement after the vote, applauding Congress for re-upping the TRIA, which he said “provides a crucial framework for economic recovery in the wake of a catastrophic terrorist attack.” He said many commercial property owners are required by their mortgage lenders to carry terrorism insurance.