A collective of affordable housing developers and managers in New York have formed Milford Street Association Captive Insurance Co., a Vermont-domiciled captive insurer.
The association captive is designed to provide more stable and cost-effective liability coverage to affordable housing operators in New York, the collective said in a statement Monday.
Milford Street offers up to $1 million in primary coverage and up to $5 million in excess liability coverage.
Members must be New York-based operators of affordable housing units that are subject to regulatory agreements and subsidized by city, state or federal financing agencies.
Each member is rated based on its risk profile and must be able to demonstrate an acceptable maximum loss history in addition to robust risk management.
Average annual insurance costs per affordable housing unit more than doubled to $1,770 in 2023, from $869 in 2019, according to a report by the New York Housing Conference.
