Summary
Commercial mortgage insurance
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Extract
The aftershocks of Sept. 11.
Shockwaves continue to ripple from the Sept. 11 terrorist attacks on the World Trade Center, rattling real estate markets and economies. One of the most threatening in the United States is the future of real estate financing left dangling by an insurance/reinsurance thread.
THE INSURANCE CLAUSE "ACTS OF TERROR" BURIED IN the boilerplate of insurance policies on commercial properties was--except perhaps for lawyers--of passing interest in the real estate industry until Sept. 11. Hurricanes, earth-quakes, floods and other natural disasters, yes-but terrorism? That, of course, all changed with four hijacked flights. And so, too, has the insurance coverage environment, because by midnight Dec. 31, 2001, "acts of terror" will have been dropped from commercial insurance policies up for renewal in the United States, leaving a ticking bomb of uninsurable properties. Unless, that is, Congress pulled a legislative rabbit out of its bailout hat before it was supposed to adjourn for the year in late November, thereby dissipating the high anxiety level among commercial real estate developers, l...See the full content of this document
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