Update on 1/15/15: On January 14, 2015, President Obama signed the bill that reauthorized TRIA for another six years, with a new expiration date of December 31, 2020. Although it was renewed, there are some revisions to the TRIA renewal program. These revisions include higher deductibles to insurers.
On December 26, 2007, the President signed into law the Terrorism Risk Insurance Program Reauthorization Act of 2007 (Pub. L. 110-160, 121 Stat. 1839) [TRIPRA]. This signing extended the existing Program through December 31, 2014, a date that is fast approaching.
The Terrorism Risk Insurance Act (TRIA) was a program that was essentially created to provide a financial backing to insurers for most acts of terrorism. As a result of this program, developers of multi-family, commercial and other properties were able to receive coverage where they may have not been able to otherwise.
The thought in the real estate and insurance sectors throughout the country was that Congress would renew the program into 2015, and beyond. Shockingly, Congress did not approve this before they adjourned for their 2014 sessions and as a result, this has left insurance companies scrambling. The hope is that this vote will be placed on the docket when Congress returns to session on January 6, 2015.
For policies that were written prior for 12/31/14 where terrorism coverage was elected, most insurance companies will continue to provide coverage. There are some policies that have sunset provisions that discontinues or limits the terrorism coverage that is in place after the expiration of the TRIA. Most new policies that are written after the expiration date will offer terrorism coverage (stand alone terrorism coverage premiums are rising now as well).
If you are unsure of where your coverage falls with the expiration of the TRIA, you should contact your insurance broker immediately to get a complete overview of your terrorism coverage during this expired period.