Housing organizations create new insurance company
Published November 1, 2004 | November 2004 issue
Central Community Housing Trust of Minneapolis has partnered with 14 other nonprofit affordable housing organizations nationwide to create a new insurance provider for the affordable housing industry. Housing Partnership Insurance (HPI) will use a variety of means to offer reduced rates, such as pooling risks and negotiating with national insurance carriers. The organizations HPI insures will pass their savings on to low- and moderate-income families in the form of reduced rents, property improvements or other reinvestments.
HPI is the first captive insurance company owned by nonprofit affordable housing organizations. (A captive insurer provides coverage to the businesses or organizations that establish and own the company.) HPI's initial policies will provide coverage to 15 nonprofit organizations for more than 30,000 apartments nationwide. The insurer plans to expand coverage to 25 organizations and 50,000 apartments by the end of 2005.