In a letter this week to the acting secretary of the Department of Housing and Urban Development, LeadingAge called on the agency to work with Congress, other federal agencies and state insurers to address issues regarding property insurance for providers of affordable housing for seniors. Both availability and affordability are problematic, according to the association.
“[A]ccess to property and liability insurance coverage is fundamental to developing, owning and managing affordable senior housing,” LeadingAge Director of Housing Operations and Policy Juliana Bilowich said in the letter, dated Monday.
“Housing providers can barely keep up with current cost increases in the areas of premiums and deductibles,” Bilowich wrote. “During a snap poll conducted of a sampling of the association’s housing provider members in July, the majority of LeadingAge members we polled reported that their insurance premiums are increasing at a ‘concerning level.’”
The poll found that increasing insurance costs are leading a third of providers to cut costs elsewhere, such as property repairs and resident services, according to Bilowich.
LeadingAge called on HUD and Congress to make necessary budgetary adjustments to properties in HUD’s rental assistance portfolio to help them cover insurance costs and to establish a property insurance product to stabilize runaway costs and to increase market competition.
Bilowich noted that only a few carriers offer coverage for affordable housing properties “let alone for affordable senior housing properties.” Therefore, competition is needed in this area, she said.
LeadingAge also called for transparency and accountability in the insurance market, along with protections against discrimination in coverage decisions.
