11. COMMITMENTS AND CONTINGENCIES Litigation Lease Commitments Insurance 2011 Annual Report 61 We currently maintain insurance coverage against acts of terrorism on all of our properties in the United States on an “all risk”  basis in the amount of up to $1 billion. The current federal laws which provide this coverage are expected to operate through 2014.  Despite the existence of this insurance coverage, any threatened or actual terrorist attacks where we operate could adversely  affect our property values, revenues, consumer traffic and tenant sales. We maintain insurance coverage with third party carriers who provide a portion of the coverage for specific layers of potential  losses including commercial general liability, fire, flood, extended coverage and rental loss insurance on all of our properties in the  United States. The initial portion of coverage not provided by third party carriers is either insured through our wholly-owned captive  insurance companies, Rosewood Indemnity, Ltd. and Bridgewood Insurance Company, Ltd., or other financial arrangements  controlled by us. The third party carrier has, in turn, agreed to provide evidence of coverage for this layer of losses under the terms  and conditions of the carrier’s policy. A similar policy written through our captive insurance entities also provides initial coverage  for property insurance and certain windstorm risks at the properties located in coastal windstorm locations. As of December 31, 2011, a total of 32 of the consolidated properties are subject to ground leases. The termination dates of  these ground leases range from 2013 to 2090. These ground leases generally require us to make fixed annual rental payments,  or a fixed annual rental plus a percentage rent component based upon the revenues or total sales of the property. Some of these  leases also include escalation clauses and renewal options. We incurred ground lease expense included in other expense as  follows: We are involved from time-to-time in various legal proceedings that arise in the ordinary course of our business, including, but  not limited to commercial disputes, environmental matters, and litigation in connection with transactions including acquisitions  and divestitures. We believe that such litigation, claims and administrative proceedings will not have a material adverse impact on  our financial position or our results of operations. We record a liability when a loss is considered probable and the amount can be  reasonably estimated. For the Year Ended December 31, 2011 2010 2009 Ground lease expense  $42,284 $36,750  $32,086 Future minimum lease payments due under these ground leases for years ending December 31, excluding applicable extension  options, are as follows: 2012 $ 26,193 2013 26,627 2014 26,593 2015 27,272 2016 27,442 Thereafter 851,184 $ 985,311