NEW YORK (Bloomberg) — More than three-fourths of large companies in the New York City area bought insurance last year to protect their property against damage from terrorist attacks, up from 54 percent in 2004, according to a survey by Marsh & McLennan Cos.The portion of New York-area businesses that have terror coverage — 77 percent — is the highest among 10 US metro areas surveyed, said New York-based Marsh & McLennan, the world's largest insurance broker, in a report on Friday. Across the US, the rate rose to 59 percent from 49 percent two years earlier. The company surveyed 1,437 clients with more than $50 million in annual revenue.

"The perceived risk is just as high as ever," said Jill Dalton, a Marsh & McLennan managing director, adding that prices rose in the US last year.

Insurers raised prices on terrorism and other types of property insurance after record losses from Hurricane Katrina in 2005, she said in an interview. Prices are falling this year because last year's lack of hurricanes encouraged insurers to compete again, she said.