New York City’s New City-Run Insurance Program

New York City Mayor Zohran Mamdani has created a city-run insurance program that — he says — will reduce the cost of property and liability insurance to people living in rent-stabilized and affordable housing.

Citizens Housing and Planning Council Executive Director Howard Slatkin said the program will issue policies for 20,000 homes in 2027 and over 100,000 homes by 2030.

"Affordable housing can't stay affordable without reining in rising operating expenses, and no expense has risen as dramatically as the cost of insurance," Slatkin said. "Every dollar in higher premiums is a dollar that can't be spent on maintaining affordable homes in sound condition for residents. Going on offense against these rising costs is essential to help put affordable housing on a sound financial footing and maximize the impact of the City's housing subsidies.”

New York City’s insurance program is going to be administered by an interagency group. The New York City Economic Development Corporation, Housing Development Corporation, and Housing Preservation and Development (HPD) will handle the heavy lifting.

The mayor says over time the program will be self-sustaining. Mamdani the hope is this will help the city stabilize rates in an area where insurance costs have tripled since 2017.

"We cannot take on the housing crisis without confronting one of the fastest-growing costs facing New Yorkers: insurance,” Mamdani said. “That’s why we're creating the first city-backed insurance program — to help New Yorkers stay in their homes, give building owners the support they need to make repairs, and build a city that New Yorkers can actually afford.”

Mamdani’s news release on the matter claims New York City is facing an “unprecedented” housing crisis. Part of the blame, he notes, is the increasing cost of insurance. It has hit affordable and rent-stabilized housing very hard.

The news release cites statistics that show out that for every $100 increase in premiums costs from insurers the city has to spend $1,200 on new transactions.

Source link: PropertyCasualty360.com — https://bit.ly/3QTIhgH