BOMA International President Sherwood Johnston, III, who met earlier this week with President George W. Bush and other business leaders to discuss the federal government’s role in addressing the unavailability of terrorism insurance coverage, is among those calling for some action in Washington, D.C.
“Every day, property owners are having serious problems buying terrorism insurance,” Johnson remarked. “Even in cases where it is available, it more often than not has a high deductible, a 30-day cancellation clause, caps on coverage, or an astronomically high price tag.
“The market is not working, and it’s time for the federal government to step in before commerce is slowed even further. Even buildings in seemingly low-risk parts of the country have experienced problems in procuring adequate levels of coverage, not to mention the difficulties faced by high-rises in New York and by properties on Pennsylvania Avenue in Washington, D.C.”
Late last year, the House passed legislation that would utilize the federal government as a backstop to insurance companies in the event of another major terrorist attack, but the Senate has thus far failed to follow suit, prompting BOMA International to redouble its efforts in seeing this issue resolved.
In January, BOMA International’s Board of Governors unanimously passed a resolution urging government to play a role in ensuring that commercial property owners can continue to obtain coverage for damage from acts of terrorism, at reasonable and affordable rates.
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