City insurance policy includes terrorism - KFDA - NewsChannel 10 / Amarillo News, Weather, Sports

City insurance policy includes terrorism

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Amarillo, TX - Earlier this afternoon (Jun. 25), Amarillo city commissioners approved this year's city property insurance policy - which includes acts of terror.

Terrorism insurance has only been around for about the last decade, but more cities are adding it to their own policies - including Amarillo. The city added terrorism coverage to their property insurance about three years ago, and the decision to do so was based mostly on practicality.

Terrorism insurance didn't exist before 9/11, but now acts as a safety net for insurers themselves. After the insurance claims from 9/11 added up to a staggering $32 billion, insurance companies pushed the federal government to be the insurer of last resort in events of that magnitude.

So in 2002, then-President Bush signed the Terrorism Risk Insurance Act, which created federal policies and funding for acts of terror.

"When you think of Oklahoma City, when you think of New York on 9/11, when you think of Washington D.C. on 9/11, when you think of Pennsylvania on 9/11, those acts can happen," says City Attorney Marcus Norris, "So, God forbid it would happen here in Amarillo, hopefully there would be some funds available to help us recover from such an act."

This year's total property insurance policy for the city will cost $461,605 dollars to cover about $923 million worth of property.

If you'd like to learn more about the TRIA or its 2007 extension, follow the links attached to this story.