Insurance Price Rate Determined for Cities at Risk of Terrorism

The Insurance Services Office, which sets guidelines for insurance pricing across the country, said yesterday that it had agreed on benchmark rates for terrorism coverage in New York and Washington, regarded by the agency as cities at the greatest risk of an attack, along with Chicago and San Francisco. The company said the rate agreed upon for Manhattan below 59th Street, would be $30 for $100,000 of coverage for nonresidential commercial buildings, less than half the cost of basic fire insurance. Elsewhere in New York City, the benchmark was set at $18 per $100,000 of coverage. For the rest of the state, it was set at $1, the same as for 95 percent of the country. David Dasgupta, a spokesman for the office, said the agreed-upon rate for downtown Washington was the same as for Manhattan below 59th Street and that the rate for the rest of Washington had been put at $18. Rates have not yet been set for Chicago and San Francisco, Mr. Dasgupta said, but the rate for a second tier of cities — Houston, Philadelphia, Boston and Seattle — has been set at $18. Full Story