Terror Insurance Law Seen Boosting CRE Projects

Once terrorism insurance-related legislation is signed into law by the president, many real estate projects that had been stalled due to lack of terrorism coverage will move forward, according to Kaye Insurance Associates, New York.At a New York City meeting organized by the company, Bruce D. Guthart, Kaye's chairman and chief executive officer, said the legislation "will [ultimately] allow for business and economic recovery." Joel Wood, senior vice president of government affairs at the Council of Insurance Agents and Brokers, told the meeting that the council doesn't know exactly how the marketplace will respond in the coming months, according to the company. "We do know that the impact will be immediate upon President Bush's signature -- insofar as terrorism exclusions will be voided pending the acceptance or rejection of consumers to an offer for the coverage," Mr. Wood was quoted as saying. "We know that the boundaries of risk for terrorism have now been largely defined for insurers, if only for a temporary time. Beyond that, we think that the marketplace response will be neither price-gouging nor a giveaway." Kaye is a subsidiary of Hub International, an insurance brokerage company.