NY insurers reminded of new anti-bias law
DFS Superintendent Adrienne A. Harris said the rules are "a critical step to ensure that New York’s affordable housing providers are not discriminated against."
On Monday, New York state financial services regulators reminded property & casualty insurers in the state that new anti-bias regulations prohibit them from asking owners whether a tenant receives financial assistance from the government, and making coverage decisions based on a building’s designation as affordable housing.
Resulting from legislation signed into law by Gov. Kathy Hochul in April, the limitations include prohibiting insurers from canceling, refusing to issue, refusing to renew or increasing a policy’s premium based on the property’s classification as an affordable housing development, or containing affordable units.
The state Department of Financial Services worked with Hochul and lawmakers to propose and pass Part BB of Chapter 56 of the Laws of 2024, aimed at prohibiting discrimination in the insurance industry.
DFS Superintendent Adrienne A. Harris called the new rules “a critical step to ensure that New York’s affordable housing providers are not discriminated against.”
A November 2022 report by DFS and the New York State Homes and Community Renewal agency reviewed property/casualty insurance companies’ practices regarding buildings with affordable or subsidized housing units, describing a significant hardening of the U.S. insurance market based on increased demand for insurance, fewer coverage options, and steady and significant rate increases.
The two agencies had also engaged with developers of affordable housing, who indicated they had experienced significant premium increases or difficulty obtaining insurance policies.