NJ spotlights possible affordable-housing insurance issues
The state issued an order directing P&C insurers to complete a survey about relevant risk categories.
New Jersey is investigating the availability and cost of insurance coverage for affordable housing, the state’s Department of Banking and Insurance said in a bulletin Monday.
According to the department, the state is aware of possible issues in the Section 8 housing choice voucher and housing assistance programs, low income housing tax credits, family development vouchers, special needs housing subsidy, and the municipal affordable housing trust fund program.
In response, the state issued Order No. A24-06, directing property and casualty insurers that authored premiums in New Jersey last year for fire, allied lines, homeowner and commercial multiple peril, inland marine, workers’ compensation, liabilities claims, fidelity, or boiler and machinery to complete a survey on the annual statement lines of business relevant to each risk category.
“Failure to comply with the terms and conditions of this order may result in the imposition of penalties,” Acting Commissioner for the New Jersey Department of Banking and Insurance, Justin Zimmerman, said in the order.
Companies must individually complete and return their responses, affirmation form, and any supplementary documents by Aug. 22, 2024, according to the department. Companies not insuring residential properties can forgo the survey document but must provide a written statement to that effect by email.
For purposes of the survey, the department said examples of Section 8 financing include government-regulated or subsidized housing like public developments and privately-owned units, with government-regulated housing being provided by a government entity or program subject to statutes, regulations, limiting resident income levels, or rents.
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