The commercial real estate market breathed a sigh of relief when Congress finally renewed the Terrorism Risk Insurance Act (TRIA) on Jan. 12, nearly two weeks after it had expired. But borrowers and loan servicers are still dealing with headaches created by this short gap in coverage.

Many commercial mortgage documents require terrorism insurance over the life of the loan. The TRIA works as a backstop; when aggregate losses reach a certain level, the program kicks in, with the government sharing in the losses with insurers.

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