HAI Group Provides Insurance Solutions for Low- and Mixed-Income Housing

PRODUCT: Insurance for low- and mixed-income housing organizations

COMPANY: HAI Group

BEST RATING: A (Excellent)

AVAILABILITY: Coverage is available through appointed agents.

FOCUS: About 146 million people—almost half of all U.S. residents—are considered low income or below the poverty line, according to Sustainable Colorado. Public housing serves approximately 2.2 million people across the country, but current economic and federal budget constraints have decreased funding for public housing—making it even less attainable for at least half a million people on waiting lists.

According to a survey from ReThink, an initiative that creates awareness for public housing, 83% of Americans believe U.S. citizens deserve a safe and decent place to live. Yet most Americans surveyed do not support public housing in their own neighborhoods and do not want to live near a public housing unit.

ReThink battles the negative perceptions and stigma associated with public housing by helping communities understand the benefits. In response to the changing landscape of housing and in support of the ReThink initiative, HAI Group now offers insurance solutions for low- and mixed-income housing organizations.

“We believe in the benefits of public housing to provide services to millions of Americans who might otherwise be in an unstable situation, including the possibility of being homeless,” explains Jerry Williams, senior vice president, insurance operations at HAI Group.

HAI Group offers insurance programs to meet the unique insurance requirements of affordable housing properties through its writing company, Housing Enterprise Insurance Company (HEIC). “Our team of professionals has experience with the complexities of RAD [Rental Assistance Demonstration] and LIHTC [Low-Income Housing Tax Credits] projects, having handled the largest portfolio conversion in the nation,” Williams explains, noting the company also offers industry-focused, in-house claims handling and risk management services.

UNDERWRITING: The program is written on admitted paper and offers agency-bill and direct-bill options. A new endorsement provides coverage for the potential loss of tax credit income in any one year resulting from covered physical loss.

Commercial liability options include employee benefits liability on a claims-made basis, hired and non-owned auto coverage as an endorsement, elimination of a separate policy in some states, coverage on a location-aggregate basis and stop-gap employers liability coverage.

Commercial property options include an enhancement endorsement for apartment owners and property managers; computer equipment included within business personal property; sublimits for earthquake, flood, business income and extra expense (earthquake and flood not available in high-risk areas); and equipment breakdown for boiler and machinery as an endorsement.

MINIMUM PREMIUM: $1,000.

TARGET: Affordable or mixed-income housing, tax credit developments, and properties and low-income senior housing financed by the U.S. Department of Housing and Urban Development under its Housing Choice Voucher Program Section 8. At least 20% of units must be “affordable” and at least 200 total units must be on schedule with a vacancy rate of less than 20%.

COVERAGE TERRITORY: All U.S. states except Alaska and Hawaii.

CONTACT: Jerry Williams, senior vice president, insurance operations; HAI Group, 189 Commerce Court, Cheshire, CT 06410; 800-873-0242, ext. 407.

Ronimarie Acord is an IA contributor.