page_title: Terrorism insurance
section_title: United States
hierarchical_section_title: Terrorism insurance / By country / United States
caption_attribution_description: English: United Airlines Flight 175 crashes into the south tower of the World Trace Center complex in New York City during the September 11 attacks
context_page_description: Terrorism insurance is insurance purchased by property owners to cover their potential losses and liabilities that might occur due to terrorist activities.
  It is considered to be a difficult product for insurance companies, as the odds of terrorist attacks are very difficult to predict and the potential liability enormous. For example, the September 11, 2001 attacks resulted in an estimated $31.7 billion loss. This combination of uncertainty and potentially huge losses makes the setting of premiums a difficult matter. Most insurance companies therefore exclude terrorism from coverage in casualty and property insurance, or else require endorsements to provide coverage.
context_section_description: In 2002, the US Congress enacted the Terrorism Risk Insurance Act, in which the government shared the cost of large insurance losses.
  On December 26, 2007, the President of the United States signed into law the Terrorism Risk Insurance Program Reauthorization Act of 2007 which extends the Terrorism Risk Insurance Act (TRIA) through December 31, 2014. The law extends the temporary federal Program that provides for a transparent system of shared public and private compensation for insured losses resulting from acts of terrorism.
  Some economists have supported U.S. government subsidies of terrorism insurance.  Soon after the 9/11 terrorist attacks, economist Edwin Mills expressed concern over whether private developers could build real estate without subsidies for insurance.  Economist David R. Barker argued that properly structured subsidies could increase overall economic efficiency.  Other economists have argued against these subsidies.
  The United States insurance market offers coverage to the majority of large companies which ask for it in their policies. The price of the policy depends on where the clients are residing and how much limit they buy.
  According to The Economist, one of the best studies to understand TRIA has been the one undertaken in 2005 by the Center for Risk Management at the Wharton Business School ("TRIA and Beyond"; available on their website below).
  In mid-2007 the idea of another extension to TRIA was tabled and is officially known as TRIREA, (Terrorism Risk Insurance Revision and Extension Act). Initially TRIREA contained several new provisions including a mandatory 'make available' clause for NCBR coverage (Nuclear, Chemical, Biological and Radiological) and the ending of the distinction between domestic and foreign events.
  The act expired on December 31, 2014, but was renewed at the start of the next congress, with Obama signing the extension of the TIRA through 2020 on January 12, 2015. Up until the 2014 expiration, many experts warned that "construction projects could be stalled and commercial loans on shopping malls, utilities and skyscrapers could be in jeopardy." In addition, according to the Baltimore Sun, the National Football League denied rumors that it would cancel the Super Bowl over the issue.
caption: Attack on the World Trade Center
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