WASHINGTON, DC — The Building Owners and Managers Association (BOMA) International recently released the results of its national survey on terrorism insurance coverage. According to BOMA, the survey documents the significant difficulties many commercial real estate professionals are facing in their attempts to obtain adequate coverage, and reveals the defects in the terrorism policies.

The survey showed that more than one quarter of respondents were unable to obtain terrorism insurance at any cost. Of the remaining 74% who have been able to secure coverage, a full 80% incurred higher premiums, caps on coverage, higher deductibles, cancellation clauses of 60 days or less, and/or exclusions for chemical, biological, or radiological acts. BOMA also says that the premium increases that building owners incurred ranged from an average low of about 20% to a high of 200%. In addition, the survey also showed that the vast majority of building owners, 80%, are planning to pass at least some of the cost on to their tenants.