Multifamily Groups Submit Further Testimony on Terrorism Insurance

WASHINGTON, DC-On behalf of the National Multi Housing Council and National Apartment Association Equity Residential Properties trust vice president and general counsel Bruce Strohm submits written testimony to the House Financial Services Committee in an effort to further the terrorism insurance legislation issue. The House of Representatives passed such legislation before the end of 2001, but the bill is still stuck in the Senate, having made little progress toward establishing a federal backstop for insurers.

The cause of the lack of forward movement, NMHC’s Jay Harris tells GlobeSt.com, is twofold. He understands from congressional staffers that, first of all, members have been distracted by the Enron hearings. Secondly, he explains lawmakers feel there is a lack of real evidence of economic dysfunction. “Lawmakers need to see more evidence of things going wrong, of companies not being able to build, and we’re starting to see that happen,” Harris explains. “The hearing [entitled, 'How much are Americans at risk until Congress passes terrorism insurance protection?'], is designed to answer those who say we need to see more evidence.”

In addition to NMHC/NAA’s testimony, further evidence was presented in a report by the General Accounting Office (GAO) called “Terrorism Insurance: Rising Uninsured Exposure to Attacks Heightens Potential Economic Vulnerabilities.” The report offers as examples, two commercial real estate companies–one with a portfolio of trophy properties, the other with non-trophy property holdings–that are unable to find enough terrorism insurance to cover the value of their properties. And the examples go on and on.