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Mall of America Gets $100M Terrorism Coverage

BLOOMINGTON, MN-Two policies, one for the 4.2-million-sf "mega-mall" and the other for the rest of Simon Property Group's portfolio, stems from GMAC Commercial Mortgage's lawsuit aimed at forcing the property owners to insure Mall of America against terrorism.

By Jim McCartney | Updated on March 28, 2002

BLOOMINGTON, MN-The owners of the Mall of America say week they have taken out a $100-million terrorism insurance policy on their “mega-mall,” and an additional $100 million policy for their other shopping center properties. Indianapolis-based Simon Property Group says it recently bought two stand-alone policies of terrorism insurance, each with $100-million aggregate limits.

The first policy will insure Mall of America, a 78-acre development here with more than 4.2 million sf of retail and entertainment space, against damage incurred from acts of terrorism. Simon plans to more than double the size of Mall of America. The second policy will insure the remainder of Simon’s shopping center portfolio against similar perils.

Simon Property Group bought the policies from Lexington Insurance Co., a subsidiary of American International Group. The purchase of the policies settles the company’s disputewith GMAC Commercial Mortgage Corp., which had sued Simon to force them to buy terrorism insurance. GMAC, the Mall of America’s principal lender, filed the lawsuit in the Fourth Judicial District Court in Hennepin County. Besides Simon Property Group, the owners of Mall of America include Teachers Insurance and Annuity Association and Triple Five Corp.

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