However, the House bill is still more ambitious than an even narrower version favored by the Senate and the White House, ultimately doing very little to clarify whether the Terrorism Risk Insurance Act (TRIA) program will be renewed.
Set to expire on December 31 if not renewed by the government, the controversial TRIA program is viewed by New York and other big-city lawmakers as vital to urban property markets, while critics call it an unneeded subsidy to private insurers.
The Senate has signaled clearly it will not accept the House bill and the White House has threatened to veto it.
Only 19 days remain before TRIA expires and further Capitol Hill deliberations remain, making insurers and real estate interests increasingly anxious as they move into year-end renewal discussions on commercial insurance policies.
The Senate passed a bill last month that would extend TRIA for seven years, widen it to cover domestic, as well as foreign attacks, and make few other changes.
The latest House bill concurs with the Senate's, but would widen TRIA to take in group life insurance, lower the damages trigger level at which TRIA funds could be tapped and includes a "reset" provision that would ease TRIA fund access thresholds for insurers in areas already hit by terrorist attack.