9/11, World Trade Center owner versus insurance companies

In 1980, Larry  Silverstein, a successful real –estate businessman from New York,  won a bid from the Port Authority of New York and New Jersey to construct building 7 of the World Trade Center, to the north of the World Trade Center site. Silverstein  signed the lease on July 24, 2001.

Right after that Silverstein took out insurance plan that “fortuitously” covered terrorism. After 9/11 Silverstein took the insurance company to court, claiming he should be paid double because there were 2 attacks. Swiss Re, Lloyd’s, Zurich Financial, Copenhagen Re, and 8 other major insurers all paid Silverstein Properties a total of $4.9 billion. Silverstein received $861 million from insurers for Building 7 alone, as well as over $4 billion for the rest of the Trade Center complex. That $861 million for WTC-7 was paid on the basis of Silverstein’s claim that airplanes were somehow responsible for making Building 7, which was not hit by any plane, disappear at free-fall acceleration

A year after the attacks Larry Silverstein mentioned in the 2002 PBS documentary “America Rebuilds,”:”I remember getting a call from the fire department, telling me that they were not sure they were gonna be able to contain the fire, and I said, ‘You know, we’ve had such a terrible loss of life, may be the smartest thing to do is to pull it’ and they made that decision to pull and then we watched the building collapse”. Larry Silverstein admits to the controlled demolition of Building 7.

The insurance companies have likewise neglected to mention that after doubling his insurance coverage immediately before 9/11, Silverstein multiplied his compensation after 9/11 by claiming double indemnity. According to Silverstein’s spokesman, “the two hijacked airliners that struck the 110-story twin towers Sept. 11 were separate ‘occurrences’ for insurance purposes, entitling him to collect twice on $3.6 billion of policies.” The bizarre double-indemnity claim was approved in 2004.

This trial remain one of the many mysteries in the 9/11 case. However In April 2006, after several months of negotiation aiming toward permitting reconstruction of the WTC complex Silverstein cedes his rights to Building One to the Port Authority allocating a portion of the insurance proceeds to the rebuilding of Building One in favor of the Port Authority. In return the US government issues pro-rata shares Liberty Bond funds for reconstruction of the site, part of which are allocated to Silverstein Properties for purposes of rebuilding the remaining buildings. Hence the costs to rebuild were partially covered by the Liberty Bonds and the construction of the new 7 WTC which began in May 2002 ended in 2006.