This week Senator Kirsten Gillibrand and Majority Leader Chuck Schumer successfully secured language for a report on property insurance in the Senate mark-ups of both the Financial Services and General Government (FSGG) and Transportation, Housing and Urban Development (THUD) appropriations bills. The language directs the Federal Insurance Office, in partnership with HUD, to conduct research and a joint study on the landscape of the property insurance market, including commercial property insurance, liability insurance, builders risk construction insurance, commercial multiple peril [CMP] policies, and umbrella insurance – with a particular emphasis on affordable and public housing.
In a recent brief, NYHC analyzed the portfolios of some of our partners and found the average cost to insure an affordable apartment is $1,770 – a 103% increase from 4 years ago when the average annual per unit premium was $869. Rapid increases in insurance costs are adding pressure to increase rents and putting the financial viability of affordable multifamily rental housing at risk. We found that costs are skyrocketing due to a number of factors, including climate change, fewer insurance companies offering multifamily coverage, changes in the reinsurance market, inflation and discrimination. However, lack of data continues to be major barrier to understanding the issue and proposing policy solutions.
This is a major step in the right direction. We are incredibly thankful to Senators Schumer and Gillibrand for their leadership on this issue and will continue to support them as they work to get this over the finish line!
The bill language can be found here:
FSGG – Property Insurance Landscape (p 11)
THUD – Insurance Costs (p 98)