Large, high value urban properties find it hard to find terrorism cover
An investigation by the US General Accounting Office (GAO) has found that owners of large, high value properties in certain urban areas, such as Manhattan, find it difficult but not impossible to get the amount of terrorism insurance they would like at prices they find reasonable. Such cover is still available, the GAO said in its report published in July, because of the Terrorism Risk Insurance Act (TRIA), which limits insurers’ exposure in an exceptional attack. TRIA remains in effect until 2014, having been extended by Congress at the end of 2007. Several insurers remained concerned about their exposure to a single event and limit the aggregate cover they will underwrite in particular places, but there was no consensus among industry figures and analysts whether TRIA should be modified or another measures taken to increase terrorism insurance coverage.