Lack of Terror Cov Hurts Mortgage Market
Tuesday, June 8th, 2004 Catastrophe Risk ManagementA new survey indicates that only 20 percent of commercial real estate portfolios would retain terrorism coverage if the requirement that insurers make it available is lifted, down from 83.5 percent. The survey by mortgage bankers suggests that if the "make-availavble" provision is removed, current terror endorsements will be cancelled by insurers and more than $400 billion in commercial loans could be exposed as a result. The Mortgage Bankers Association (MBA) conducted its survey to determine the prevalence of terrorism risk insurance coverage and the impact the removal of the "make-available" provision of the Terrorism Risk Insurance Act (TRIA) would have on commercial/multifamily real estate finance. Congress is currently considering renewal of TRIA.
