Dealing with Insurance Exclusions in Response to Terrorism
Probate and Property, September/October 2002, Volume 16, Number 5
By Jo-Ann M. Marzullo
In the wake of the terrorist attacks of 2001, insurance companies, property owners, and tenants are all reconsidering whether insurance policies provide coverage for harm to persons, real and personal property, and business interruption from a terrorist act. The exclusions and limitations from insurance coverage are being revised by insurance companies to exclude terrorism, and the proposed changes are under review by various state regulators. As of the writing of this article, conflicting legislation has passed both houses of Congress regarding federal assistance for terrorism losses for a short period of time. As a result, real estate practitioners and their clients must reassess what insurance coverage is available for terrorism losses and how the availability and cost of such coverage is changing.