After the September 11 attack more than eleven years ago, more and more businesses are relying on the availability and affordability of terrorism risk insurance. In fact, it is a vital factor that is usually considered in every commercial real estate deal.
What is terrorism risk insurance?
The TRIA or the Terrorism Risk Insurance Act is a government terrorism insurance program signed by US President George W. Bush back in November 2002 which establishes a risk-sharing partnership between the government, the insurance company and the policy holder. It is a reinsurance coverage given to insurance company once there is a declared terrorism event. It is also a private/public compensation for insured losses due to any terrorism event like what happened in the September 11 terrorist attack.
Because terrorism is a continuing and unpredictable threat to the society, it is important that business and commercial buildings should be insured in case of terrorist attacks. This is according to the NAR (National Association of Realtors) 2012 Commercial Committee Vice Chairperson - Linda St. Peter. Without a doubt, it serves to protect the business sector and its investment. With its presence, it gives them a sense of security that their investments are protected regardless of what will happen; thus causing a more solid and stronger commercial real estate economy today. The presence of this program is the reason why there is a steady increase of a better commercial condition as of today.
Almost all real estate organizations are supportive of this program. Although it started out as a temporary solution after the 9/11 attack, it was reorganized twice with its current expiration set on December 2014. Today the real estate commercial market is slowly moving forward towards a recovery from the recession. Any disturbances in regards to the terrorism risk insurance will certainly bring about serious consequences and possible downfall amidst the vulnerable economic situation today. Thus, NAR is calling for a more stable and permanent organization of this terrorism risk insurance. After all it is understandable that at this point when the economy has taken a nose dive several years back, business investors are quite vulnerable. A little sign of disruption, they will immediately pull out their investments which can easily cripple a business.
Other than maintaining the physical condition of your business like having regular radon testing and termite inspections, investors today are very particular that building inspections are done regularly. This is the physical assurances each investor is looking for. However, they are also interested and willing to ensure themselves that all their investments are covered by the terrorism risk insurance.
Is your business covered with the TRI today?
Champia Real Estate Inspections provides commercial and residential home inspections in the Atlanta, GA, Tampa,Fl and Orlando, FL areas with ASHI certified home inspectors. Our certified inspectors will deliver complete residential reports within 24 hours, with commercial inspection reports returned within 4 days.
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