Surging insurance rates covered by NPR Marketplace
A member of HPIEx, HPN's insurance captive since 2016, Affordable Homes and Communities (AHC) spoke with NPR's national Marketplace program about surging property & insurance insurance rates for mission-driven housers.
Affordable housing is generally misperceived to be higher risk than it actually is, so today, 23 HPN members are owners of this captive, insuring over 100,000 affordable units nationwide with a total value of over $11 billion.
Captives are a risk financing mechanism to have greater control over your insurance program and share losses/risk across peers. Member who join HPN and HPIEx have transparency. As co-owners, we know why the premiums are increasing in the areas we control, as well as the impact from reinsurance costs. In the general market, companies have no idea what their premiums will be just weeks before their effective date, if they will receive the limits needed, and what the deductibles will be. HPIEx already had pricing for Q1 2024 renewal by the beginning of Q3 2023.
Read and listen to the whole story.