"In the system as we know it now, if you can't get terrorism insurance, you can't build buildings," Raymond T. O'Keefe, co-chair of the Real Estate Board of New York's Economic Development Committee, tells GlobeSt.com Northeast Bureau Chief Glen Thompson.
"People are saying this could bring construction to a halt," says O'Keefe. "This could be a tremendous block in real estate activity." O'Keefe is also a regional managing director at Grubb & Ellis Co.
He says a scenario in which insurers refuse to provide terrorist coverage "will be a real problem, because in order to build buildings, you have to secure financing. And in order to secure financing, you have to have insurance."
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