By Ilya Marritz, July 3, 2014
If terrorists were to attack a U.S. city again, who would pay for catastrophic damage? In the aftermath of the Sept. 11, 2001, attacks on New York, Congress provided the answer: the Terrorism Risk Insurance Act.
While most ordinary people will never have need of it, Douglas Durst, one of New York’s real estate barons, does. His family has trophy properties, like One World Trade Center, Bank of America Tower and the Condé Nast Building, all around Manhattan. All of his occupied buildings have terrorism insurance. And he says without the federal government providing a backstop on private insurance policies, many major real estate transactions would grind to a halt.