One of the government programs most critical to the commercial real estate industry will soon expire, and not much is being done about it. Partisan fights are dominating over sound policy. Winning majority control in the next election (and the one after that) takes priority over finding meaningful solutions to today's issues. In the midst of this erratic political climate, the future of a successful and much-needed program is in the hands of a dysfunctional Congress. By all accounts, the Terrorism Risk Insurance Act has been a huge success. Before 9/11, terrorism risk insurance was never anticipated. However, immediately following 9/11, it became apparent that the insurance and reinsurance industries were not equipped to handle the potential risk of another massive attack. Many owners of commercial properties were advised that their policies would not be renewed or that their new policies would exclude terror or war risks. Without adequate insurance, it is difficult - if not impossible - to operate or acquire properties, refinance loans, and sell commercial-backed securities.
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