April 1, 2015

TRIA is the Terrorism Risk Insurance Act which was signed into law by President George W. Bush in 2002 and was just extended through 2020 by President Obama. It requires that all commercial policies offer insurance against damage by terrorism. You will usually see this as an “opt-in” or “opt-out” signature line on your insurance proposal.

Many Board Members wonder if this is something they should consider for their communities. It is definitely something that should be discussed by the board. While most community associations are not considered targets for terror attacks, those associations which are located near airports, military installations, or other areas that could be considered high-value may wish to consider it.

According to the U.S. Department of the Treasury website, the definition of “Certified Act of Terrorism” is “any act certified by the Secretary of the Treasury in consultation with the Secretary of Homeland Security, to be an act that is dangerous to human life, property or infrastructure and to have resulted in damage within the U.S. (or outside the U.S on a U.S. flagged vessel or premises of a U.S. mission) committed as part of an effort to coerce U.S. civilians or to influence either policy or conduct of the U.S. Government through coercion.”

If your community is considering Terrorism Insurance, you should discuss the policy coverage and exclusions, with your agent.

Terri Guest is the Northern California Sales & Marketing Representative for Berg Insurance Company and can be reached at Terri@berginsurance.com. Have an insurance question? Ask Terri and your question may be the subject of next month’s edition of Coverage Corner! If your question is picked, you will win a Starbucks gift card! This month’s winner is Beth Ramirez from Associa Northern California.