HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

NEW YORK STATE SENATE EXAMINES RESIDENTIAL INSURANCE CRISIS AT JOINT HEARING Three Senate committees convened November 18 for a wide-ranging hearing on the residential property insurance market, with Acting Superintendent of Financial Services Kaitlin Asrow providing the opening testimony on a crisis that has prompted constituent complaints across the state. Asrow outlined a national market in turmoil: claims have increased 50 percent nationwide while claim severity has doubled, driving average homeowner premium increases of 24 percent from 2021 to 2024. She attributed the instability to climate change, inflation, rising repair costs, and social inflation, noting that New York faces particular vulnerability with 78 percent of its population in coastal areas. However, Asrow emphasized that New York's regulatory framework has insulated consumers somewhat from the worst national trends. Rate increases in New York from 2021 to 2024 were about half the national average, and the state maintains non-renewal rates among the lowest in the country. Property values in New York have risen 3.8 percent over the past year, compared to 1.7 percent nationally, yet premiums remain below the national average. The hearing, chaired by Sen. Brian Kavanagh, reflected months of investigative work by the Housing, Insurance, and Investigations committees. Sen. Jamaal Bailey, Insurance Committee chair, emphasized that rising costs are affecting quality of life, particularly for elderly homeowners on fixed incomes, and pressed Asrow on whether the state could mandate broader disclosure and availability of insurance discounts. Asrow noted that approximately 98 percent of insurers surveyed are offering optional discounts for resiliency measures like storm shutters and shatterproof glass, which typically range from 3 to 6 percent. She indicated DFS is developing a summary of available discounts to help consumers. Sen. Brian Kavanagh raised concerns about the use of proprietary climate modeling in rate-setting, questioning whether DFS has adequate oversight of sophisticated models insurers may be using. Asrow acknowledged the challenge of accessing proprietary models but indicated DFS would focus on governance structures around model use rather than unpacking the models themselves. The hearing included testimony from 30 witnesses representing insurers, housing advocates, climate experts, and consumer groups. The committees plan to publish an investigative report with recommendations ahead of the 2026 legislative session. NEW YORK STATE SENATE EXAMINES RESIDENTIAL INSURANCE MARKET AMID AFFORDABILITY CRISIS The New York State Senate Housing, Construction and Community Development Committee held a joint public hearing on November 18 to examine the property and casualty insurance market for residential properties, with Acting Superintendent of Financial Services Asrow defending the department's rate-setting practices against skeptical questioning from multiple senators. Sen. Skoufis presented a May 2024 New York Times analysis showing that New York insurers were profitable for 10 consecutive years—a stark contrast to other states. California, the nation's largest state, lost money in six of the prior 10 years, while many Midwest states experienced losses in four to six years. Skoufis pressed Asrow on whether rates are too high in New York and whether policyholders are subsidizing losses in other states. Asrow responded that New York's profitability is "about average" compared to other eastern seaboard and high-population states, and that DFS reviews rate filings to ensure expenses and projected losses are New York-exclusive. Sen. Gounardes challenged the opacity of proprietary actuarial models, calling them a "black box" that invites "uncertainty and the opportunity to make things up." He questioned how DFS can adequately oversee rates without access to proprietary data, comparing the situation unfavorably to federal regulatory practice. Asrow clarified that DFS does see rate-setting formulas and factors but acknowledged caution about climate risk models that remain proprietary. Sen. Kavanagh focused on liability insurance, noting that policyholders report premiums doubling and tripling without adequate explanation. Asrow acknowledged observing "social inflation" and higher jury awards driving liability increases. Kavanagh requested a list of current discounts available to consumers. Sen. Bailey, representing the Bronx and Mount Vernon, raised concerns about historical red-lining and whether discount practices could perpetuate geographic discrimination. He asked whether DFS could help consumers determine adequate coverage and inquired about "geo-fencing"—more granular geographic rating below the borough level. Asrow reported that DFS does not receive claims-level data and that community-level mitigation investments have not yet generated discounts because the department relies on historical loss data. He confirmed that Section 8 status is prohibited by statute as a rate-setting factor and outlined enforcement mechanisms. Key figures cited: 3.4 million homeowners policies written in 2024; 1.1 million co-op and condo policies in 2022; approximately 1,100-1,200 carriers operating in New York; and 23 percent below-national-average premiums for homes with replacement cost under $400,000. Sen. O'Mara, representing rural Finger Lakes and Southern Tier counties, focused on impacts to lower-income households and asked about crop loss insurance for farmers. Asrow said he would work with the senator on agricultural issues. The hearing revealed significant tension between DFS's mandate to maintain market stability and carrier solvency versus legislative pressure to ensure affordability and transparency for consumers. NEW YORK STATE SENATE EXAMINES RESIDENTIAL INSURANCE CRISIS AS INDUSTRY CITES CLIMATE RISK, LITIGATION COSTS The New York State Senate Housing, Construction and Community Development Committee held a joint hearing on November 18 to examine the residential property and casualty insurance market, hearing testimony from the Department of Financial Services and major industry trade associations about rising costs, availability challenges, and potential legislative solutions. Industry representatives presented data showing significant cost pressures: home prices up 58 percent over five years, rebuilding costs up 41 percent, and litigation costs 67 percent higher than the national average. The American Property Casualty Insurance Association reported that catastrophic weather events in New York increased tenfold from five years ago, with $31 billion in losses over the past five years, and warned that a major hurricane could cause over $100 billion in insured losses—wiping out 69 years of industry returns on net worth. The National Association of Mutual Insurance Companies cited repair costs increasing 35-45 percent since 2019 and noted that New York ranks second nationally in tort costs per household at over $7,000, compared to a $4,000 national average. The industry also highlighted insurance fraud, with one witness citing $300 billion in annual fraud nationwide and litigation financing reaching $25 billion in 2025, projected to exceed $60 billion within a decade. Senators pressed witnesses on apparent contradictions in the industry's position. Sen. Skoufis expressed difficulty reconciling claims of enormous climate risk and regulatory burdens with testimony that New York's insurance rates remain below the national average and increases are lower than nationwide. He questioned whether catastrophic event costs are baked into current rates and whether consumers would receive refunds if predicted disasters don't materialize. Sen. Kavanagh explored potential policy solutions including applying Community Reinvestment Act-style obligations to insurers, creating state-backed reinsurance facilities, and expanding captive insurance options. He expressed skepticism about liability rate doubling, noting that high jury awards have existed for decades. Sen. Bailey focused on fraud quantification, data-driven rate-setting practices, and how frequently rates are updated based on new information. He emphasized the hearing was not adversarial and called for finding middle ground between constituent needs and insurer solvency. Department of Financial Services Superintendent Asrow committed to partnering with legislators on discount communication transparency and exploring potential regulatory models. He noted that file-and-use rate approval is currently "file and use in name only," as carriers have not moved without explicit DFS approval, and that reinsurance costs have doubled. The hearing highlighted the complex tension between industry arguments for rate increases based on climate risk and litigation costs, and legislative concerns about affordability and market stability. Senators indicated ongoing focus on fraud prevention, building code improvements, litigation reform, and potential new regulatory approaches. NEW YORK — Insurance industry representatives testified before the Senate Housing, Construction and Community Development Committee on Tuesday that litigation costs, fraud, and nuclear verdicts are driving up property insurance rates and threatening market stability in New York, but senators pressed for concrete evidence to support the claims. Representatives from the American Property Casualty Insurance Association and the New York Insurance Association argued that New York's litigation environment is significantly worse than the national average, citing bodily injury claims at 6.6 times the national average and nuclear verdicts 67 percent higher than the nation. They estimated litigation costs at approximately $7,000 per household and pointed to New York City's reported $1 billion in annual litigation settlements. However, Senators Skoufis and Kavanagh repeatedly challenged the testifiers to provide specific data on fraud prevalence in New York. When asked what percentage of claims are fraudulent, the industry representatives declined to provide estimates, with Erin Collins saying she feared she might "underestimate the amount." Sen. Kavanagh noted he has "not seen any evidence that legal system abuse or fraud are either pervasive or increasing in New York" despite numerous conversations with insurers and property owners. The industry witnesses cited a $300 billion nationwide fraud estimate and referenced video evidence of staged accidents, but acknowledged that fraud is difficult to quantify and that the New York Department of Financial Services issues annual fraud reports. When pressed on what percentage of suspected fraudulent claims actually result in litigation and verdicts, the testifiers could not provide specific figures. Sen. Skoufis highlighted a significant discrepancy in carrier numbers, noting that New York has approximately 200 property and casualty companies compared to only four writing new homeowners coverage in California's wildfire-prone areas—a 50-to-1 ratio he suggested indicates New York remains profitable for insurers. The industry countered that California's rate suppression led to carrier withdrawals and that New York's larger number of carriers reflects a healthier market. The hearing also addressed flood insurance gaps, with Robert Gordon noting that only 3 percent of New York homeowners have flood insurance despite it being the most common peril and increasingly prevalent due to climate change and urban flooding. Sen. Fernandez raised concerns about coastal communities' difficulty obtaining flood insurance and questioned what the state could do beyond relying on the federal National Flood Insurance Program. Industry witnesses recommended legislative reforms including making staged accidents a felony, imposing reasonable limits on non-economic damages, and regulating third-party litigation financing. They cited Florida's recent reforms, which resulted in only a 1 percent homeowners rate increase last year—the lowest in the nation. Sen. Bailey cautioned against using the term "nuclear verdict" to imply excessiveness, noting it is merely a $10 million-plus threshold, and emphasized the need for concrete data on litigation costs to have a substantive policy conversation. The committee indicated it would request additional documentation from the industry on fraud statistics, litigation trends, and specific reform recommendations. NEW YORK — A joint Senate committee hearing on residential property insurance revealed a deepening crisis in the affordable housing market, with testimony showing insurance premiums for existing affordable housing have increased an average of 25 percent annually, with some buildings experiencing 100 percent cost increases over four years. Commissioner Ahmed Tigani of the NYC Department of Housing Preservation and Development warned that escalating insurance costs are threatening the viability of affordable housing preservation efforts. HPD, which oversees 43,000 households including 8,200 individuals using housing vouchers, reported that liability insurance has become the biggest cost driver, with wide variation in premiums even among similar buildings in the same loan program. "Simply put, buildings cannot operate and we cannot create and preserve affordable housing if that housing is not insured," Tigani testified. "This steep and rapid cost escalation not only strains HPD's ability to build, renovate, and finance, it also places existing affordable housing under serious financial strain." Representatives from the insurance industry outlined potential solutions including building code improvements, mitigation incentives, and fraud prosecution. Robert Gordon noted that a three-year prohibition on non-renewals creates a "friction point" in New York, preventing insurers from quickly repricing policies as inflation and climate losses mount. Cassandra Anderson reported that only five fortified roofs currently exist in New York State, despite evidence from other states that such improvements reduce costs. Senators pressed witnesses on data gaps and inconsistencies. Sen. Kavanagh questioned why discounts for risk-reduction technologies like water sensors and fire detectors vary widely across insurers, and expressed concern that insurance industry representatives claimed not to assess whether policy changes affecting greenhouse gas emissions would increase future risk. "I think that strikes me as a policy that would constitute putting your head in the sand," he said. Sen. Fernandez raised concerns about enforcement of anti-discrimination laws passed in the FY25 budget, asking whether any penalties have been imposed. Tigani acknowledged that insurance costs continue rising despite the legislation, and that discrimination against buildings with Section 8 tenants remains a concern. The hearing, held by the committees on Housing, Construction and Community Development; Insurance; and Investigations and Government Operations, highlighted the need for a multipronged approach to address litigation costs, fraud, climate resilience, and regulatory barriers to solutions like captive insurance programs. NEW YORK STATE SENATE EXAMINES RESIDENTIAL INSURANCE CRISIS, HEARS CONFLICTING TESTIMONY ON COST DRIVERS The New York State Senate Housing, Construction and Community Development Committee held a joint public hearing on November 18 to examine the residential property and casualty insurance crisis, hearing testimony that revealed sharp disagreements over the causes of soaring premiums and the appropriate legislative remedies. The hearing was prompted in part by a dramatic 500% insurance increase at Tracey Towers, a Mitchell-Lama affordable housing complex in the Bronx, which priced out residents from what is supposed to be an affordable housing beacon, according to committee chair Sen. Bailey. Andrew Finkelstein, president of the New York State Trial Lawyers Association, testified that residential insurance is prohibitively expensive because "the system rewards delay, secrecy and profit sharing instead of protecting policyholders." He cited record industry profits—$88 billion in 2023 and $130 billion in net income in the first quarter of 2024, a 148% increase—and argued that insurers use "illusory insurance" policies that deny legitimate claims in practice. Finkelstein advocated for three legislative solutions: sunshine laws requiring transparency and claim-level data disclosure; strong bad faith laws with enforcement teeth; and scrutiny of insurer fraud. He disputed industry claims about litigation costs, noting that "nuclear verdicts" don't impact insurers since they only pay policy limits, and estimated that less than 0.5% of claims are fraudulent. He also noted that only 0.5% of litigated cases actually go to verdict, with insurers settling 99% of litigated claims—a practice he attributed to a business model of "deny, delay, defend, defraud and disinform." Sen. Skoufis expressed frustration with the lack of data provided by insurance industry trade associations in earlier testimony, noting they made assertions about exponentially increased litigation without supporting numbers. He pressed Finkelstein on whether bad faith laws in other states actually deter bad faith conduct, and Finkelstein testified they do. Professor Robert Hartwig of the University of South Carolina, a former president of the Insurance Information Institute, offered a different perspective, attributing premium increases to four principal factors: inflation, demographics, climate risk, and legal system abuse. He documented that construction material costs rose 45% from January 2020 through mid-2025—nearly double the 24% Consumer Price Index increase—and that home values in New York State rose 94% over the past decade. He cited models suggesting a Category 3 hurricane in Queens could result in insured losses exceeding $100 billion. Hartwig stated he has no data showing fraud is a significant cost driver in property insurance, though he documented extensive fraud in no-fault auto insurance. He noted that New York's property insurance market is relatively stable compared to Florida and California, with a non-renewal rate of 0.49% from 2018-2023, implying 99.5% of policies are renewed annually. New York City Department of Housing Preservation and Development officials testified that they oversee approximately 43,000 federal housing vouchers, including 38,000 Section 8 housing choice vouchers, and are experiencing general difficulty accessing insurance at reasonable prices. Commissioner Ahmed Tigani said HPD is interested in collaborating with state partners on alternative insurance pathways and legislative solutions. Sen. Bailey pressed witnesses on specific data and mechanisms, noting that attorneys face disbarment for filing fraudulent claims, which creates a strong disincentive for such conduct. He also sought to understand the mechanics of bad faith laws and whether tort reform would actually reduce insurance costs. The hearing revealed a fundamental disagreement: trial lawyers and housing advocates argue that insurer practices—delay, denial, and secrecy—are the primary cost drivers and that transparency and bad faith laws are needed; while insurance economists argue that inflation, climate risk, and litigation costs are the main drivers. The committee indicated it will continue examining legislative solutions. NEW YORK — A joint Senate hearing on residential property insurance revealed a market in crisis, with expert testimony highlighting litigation costs and social inflation as primary drivers of premium increases, while affordable housing providers warned of an existential threat to their sector. Professor Hartwig, an insurance expert, testified that New York's residential market is performing better than major competitors like Florida and California, with a 99.5 percent renewal rate compared to Florida's 3 percent. However, he identified litigation and legal system abuse as significant cost drivers, particularly in commercial liability insurance, where insurers paid out $115 for every $100 earned in premiums in 2024. Hartwig attributed much of the cost increase to "social inflation"—a societal shift toward viewing plaintiffs more sympathetically and increased propensity to sue, fueled by record spending on legal services advertising. He cited an $8 billion annual cost from social inflation in commercial auto insurance alone and estimated a "tort tax" of $7,000 per household in New York State. Sen. Skoufis pressed Hartwig on whether the Department of Financial Services is approving excessive rates, questioning why insurers settle 99.5 percent of allegedly fraudulent claims rather than litigating them. Hartwig acknowledged fraud is pervasive but noted the high legal bar for proving fraud and the cost of prosecution. The hearing's most urgent testimony came from Carlina Rivera, president and CEO of the New York State Association for Affordable Housing. She described an insurance crisis threatening the viability of affordable housing developments statewide. Kennedy Plaza Apartments in Utica saw premiums jump 44 percent—from $168,000 to $298,000—forcing the 292-unit complex to deplete reserves. A 2024 housing conference report showed per-unit premiums doubling from $869 to $1,770, with insurance now consuming up to 22 percent of monthly rent in some properties. Rivera proposed six legislative initiatives, including a safe housing incentive program offering premium discounts, a state insurance investment program to reward insurers serving underserved communities, and an affordable housing reinsurance trust to share catastrophic losses. She also endorsed Sen. Kavanagh's bill requiring insurers to provide critical data to DFS and offer discounts for mitigation measures. Wilson Kimball, representing public housing authorities, began testimony describing insurance costs as "crippling" the sector, though his full remarks were not completed during the hearing. The hearing underscored a fundamental tension: while New York's residential market remains more stable than other states, the affordability crisis is forcing difficult choices for property owners and threatening the long-term viability of affordable housing. NEW YORK STATE SENATE HEARING ON AFFORDABLE HOUSING INSURANCE CRISIS — Testifiers warned that skyrocketing property and casualty insurance costs are threatening the viability of affordable and supportive housing across New York, with some providers facing increases exceeding 40 percent and forced to make devastating operational choices. Services for the UnderServed (S:US), a major nonprofit housing provider, reported insurance costs nearly tripled from under $6 million three years ago to over $16 million today—with lower coverage limits—leaving the organization with $4 million in unrecoverable costs that cannot be passed to extremely low-income tenants. Perry Perlmutter, S:US president and CEO, testified that insurers have withdrawn from the market, forcing providers to cobble together coverage from non-admitted carriers at inflated rates. Wilson Kimball, executive director of the Yonkers Housing Authority and representative of the New York State Public Housing Authorities Directors Association, described a single development's insurance jumping from $800,000 to $1.2 million in one year, forcing the authority to defer critical maintenance—including a $30 million electrification project—and contemplate staffing cuts affecting 456 Teamsters. Rebecca Zangen, chief policy officer of the Supportive Housing Network of New York, reported that as of May 2025, the state has 64,000 supportive housing units with 5,000 more under construction, but the insurance crisis threatens these investments. A 2021 network survey found average premium increases of 44 percent in a single year. Testifiers proposed four main policy solutions: transparency requirements including annual reporting on insurance availability and pricing; a state-run excess liability insurance fund for affordable housing providers; support for nonprofit insurance pools and captives (with testifiers suggesting $25 million in state funding versus the current $5 million); and enforcement of New York's 2024 ban on discriminatory underwriting practices. Sen. Bailey pressed testifiers for quantifiable data linking insurance costs to reduced affordable housing development, emphasizing the broader social impact when housing becomes unavailable. Sen. Skoufis questioned whether insurance carriers are settling meritless claims and explored why policyholders lack final say in settlement decisions—a practice he suggested may encourage frivolous litigation. Sen. Kavanagh engaged substantively on specific mechanisms, asking about existing models for excess liability funds in other jurisdictions and whether risk mitigation investments are actually resulting in premium discounts. Testifiers acknowledged that despite installing cameras, fire suppression systems, and other safety measures, insurers often do not reward these investments with lower premiums. The hearing, held by the Senate Housing, Construction and Community Development Committee on November 18, 2025, underscored that without legislative action, affordable housing providers may be forced to sell buildings, defer maintenance indefinitely, or cease operations—potentially reversing decades of state investment in supportive housing for vulnerable populations including people with serious mental illness, developmental disabilities, and formerly homeless individuals. NEW YORK STATE SENATE EXAMINES RESIDENTIAL INSURANCE CRISIS THREATENING AFFORDABLE HOUSING Property owners and housing advocates testified before a joint Senate committee hearing on November 18 that residential insurance costs have skyrocketed across New York, with increases of 100-200% in some cases, threatening the viability of rent-stabilized and affordable housing stock. Kathleen Irwin of the New York Apartment Association presented survey data from over 60,000 units showing statewide insurance costs rose 113% in five years—from $703 per unit annually in 2020 to $1,501 in 2024. In the Bronx and northern Manhattan, increases reached 134%, with some buildings paying more than $3,300 per unit per year. She reported that 87% of owners have been forced to increase deductibles or cut coverage, and 74% of small owners experienced outright denial of coverage. A particularly contentious issue emerged around insurance fraud. Irwin testified that 70% of property owners with video evidence disproving fraudulent slip-and-fall claims still saw their insurers settle the claims anyway. Sen. Skoufis pressed witnesses on this dynamic, arguing that insurers face little downside to settling—the costs get passed to property owners through higher premiums at renewal—while property owners absorb all the risk through claims history affecting future rates. "There is very little downside for them. You absorb all that downside," Skoufis told the witnesses. Tim Foley of the Building & Realty Institute of the Hudson Valley reported regional variations, with Rockland County experiencing a staggering 67.2% increase over two years. He cited data showing insuring an affordable apartment now costs $1,770, a 103% increase in four years. Ann Korchak of Small Property Owners of New York described a personal crisis: her family's 10-unit building on the Upper West Side faced a 43% insurance increase, with liability costs up 95%. Umbrella coverage dropped from $100 million to $15 million, and she was forced to pay a three-year premium upfront because no other carriers would quote her. Witnesses proposed four main solutions: state-backed reinsurance programs to stabilize premiums, tort reform to address fraudulent claims and allow property owners to recover attorney fees, longer-term insurance contracts to provide rate predictability, and expanded premium discounts for climate-resilient construction. Sen. Kavanagh pressed witnesses for specific documentation of insurers refusing coverage based on rent-stabilized status, noting that the state had previously banned such discrimination. He questioned why the Apartment Association wasn't recommending stronger enforcement of existing anti-discrimination laws. The hearing underscored the tension between property owners facing unsustainable costs and insurers citing legitimate risk factors including climate change, inflation, and what they characterize as a litigation environment favorable to plaintiffs. The committee indicated it would consider revised versions of transparency bills and explore reinsurance models used in other states. NEW YORK STATE SENATE HEARING EXAMINES INSURANCE CRISIS DRIVEN BY CLIMATE CHANGE Albany — The New York State Senate's joint committee on housing and community development held a hearing on November 18 to examine the residential property insurance crisis, with testimony focusing on climate change as the primary driver of rising premiums and insurer non-renewals. Testimony revealed stark disparities in insurance costs across New York. Manhattan premiums have risen 134 percent, with some buildings paying more than $3,300 per apartment annually, according to Tim Foley of the New York Apartment Association. The state's insurer of last resort, the New York Property Insurance Underwriting Association, currently covers 22,000 homeowners representing $8 billion in property value. Multiple witnesses warned that New York is vulnerable to a crisis similar to California and Florida. Dave Jones, former Insurance Commissioner of California, testified that U.S. home insurance premiums have risen 24 percent on average in the last three years. California's FAIR Plan is now raising rates by more than 35 percent on average policyholders following devastating wildfires. Advocates testified in support of legislation to hold fossil fuel companies accountable for climate-driven insurance losses. Senate Bill 8585, sponsored by Sen. Kavanagh, would authorize the state Attorney General to sue major oil and gas companies to recover insurance losses from climate disasters. Iyla Shornstein of the Center for Climate Integrity argued that fossil fuel companies knew decades ago their products could cause catastrophic events but continued their business model unchanged. Jones noted that insurers have successfully used subrogation claims in other contexts—health insurers recovered billions from opioid and tobacco companies, and property insurers recovered $11 billion of $12.6 billion in losses from the 2018 Camp Fire caused by Pacific Gas & Electric. Yet insurers have not pursued similar claims against fossil fuel companies. Sen. Bailey pressed witnesses on geographic disparities in insurance availability, noting that Mount Vernon and Scarsdale have similar average median incomes but vastly different insurance costs. He called for state-level data collection to document neighborhood-level insurance discrimination. Witnesses also emphasized the importance of requiring insurers to account for risk mitigation measures in their pricing models. Colorado recently became the first state to mandate this approach. Elizabeth Derbes of the Natural Resources Defense Council highlighted successful programs including Alabama's Strengthen Alabama Homes Program, which has retrofitted 17,000 homes, and noted that New York's 2022 Environmental Bond Act authorized $4.2 billion for climate resilience projects. The hearing examined four bills: S-8585 (subrogation claims against fossil fuel companies), S-8583 and S-8583A (requiring insurers to account for mitigation in pricing models and data collection), and S-186A (requiring insurers to divest from fossil fuel investments). NEW YORK STATE SENATE HEARING REVEALS INSURANCE CRISIS THREATENING AFFORDABLE HOUSING VIABILITY The New York State Senate Housing, Construction and Community Development Committee held a joint public hearing on November 18, 2025, examining the property and casualty insurance market crisis for residential properties, with particular focus on the devastating impact on affordable housing across the state. Testimony revealed a severe and accelerating crisis: insurance costs for affordable housing have skyrocketed 103-110% since 2017-2019, rising from approximately $500 per unit to $1,500 or more annually. According to Patrick Boyle of Enterprise Community Partners, 57% of the 428 affordable housing projects studied—representing 37,000 units statewide—are now running operating deficits, driven primarily by insurance cost escalation. Rachel Fee of the New York Housing Conference presented data showing that rising insurance costs have increased subsidy requirements by $10,700 per new construction unit and are deterring preservation of distressed buildings. Emily Klein of the Community Preservation Corporation documented geographic disparities, noting that insurance costs for similar multifamily buildings in the Bronx average $200 per unit higher than other boroughs—a disparity that raised concerns from Sen. Bailey about potential discrimination in insurance pricing in communities with the lowest wages and highest poverty rates. John Crotty, president of Milford Street Association Insurance Company, presented an insurance captive model designed specifically for affordable housing. He shared data showing New York City has over 50,000 pending slip-and-fall cases representing approximately $3.8-4 billion in liability exposure. Crotty stated the captive could save 15-20% upfront and potentially 50-60% overall, though he emphasized that comprehensive solutions are needed. Witnesses called for a package of legislative and policy solutions including: improved data transparency on insurance rate drivers; tort reform measures including potential Scaffold Law carve-outs for affordable housing; disclosure requirements for Third Party Litigation Funding; risk mitigation incentives with premium credits; and exploration of a public insurance program modeled on the National Flood Insurance Program. Sen. Skoufis pressed witnesses on why affordable housing operators lack awareness of available discounts and learned that the broker-of-record system limits shopping and transparency. He also requested written follow-up on specific statutory and regulatory barriers to creating additional insurance captives. The hearing underscored that without intervention, the $100 billion-plus in city and state affordable housing investments over two decades could be jeopardized by unsustainable insurance costs that now account for 16% of total per-unit expenses. NEW YORK — The New York State Senate Housing, Construction and Community Development Committee held a joint public hearing on November 18 examining the residential property insurance crisis, hearing testimony from affordable housing advocates, homeowner service organizations, and consumer protection groups about escalating premiums, non-renewals, and reduced coverage threatening housing stability across the state. Testimony painted a dire picture of an insurance market in crisis. Rachel Fee of the Community Preservation Corporation reported that $148 of monthly rent for affordable housing tenants goes toward insurance costs, with insurance cost spikes adding approximately $11,000 per unit in capital subsidy over a four-year period. Emily Klein of CPC presented data showing insurance costs in rent-stabilized housing increased 60 percent from 2020 to 2024—the largest driver of expense increases—while repair and maintenance costs declined, suggesting building owners are deferring critical maintenance to offset insurance costs. Mary Ann Rothman of the Council of New York Cooperatives and Condominiums reported that co-ops and condos housing 1.4 million New Yorkers have experienced annual insurance increases ranging from 15 to over 300 percent. She cited specific examples: a Bronx co-op with 141 units saw premiums jump 242 percent from $174,000 to $595,000 annually, costing each homeowner $2,985 more per year. Kevin Wolfe of the Center for New York City Neighborhoods presented data showing that for every $100 increase in insurance premiums, homeowners become 5 percent more likely to experience mortgage delinquency. He noted that approximately 7 percent of New York homeowners carry no insurance at all, with roughly one-third living in majority Black zip codes, deepening racial disparities in homeowner stability. Sara Enright of Consumer Reports presented the organization's Homeowners' Insurance Bill of Rights, developed with input from over 50,000 consumers nationwide. She reported that New Yorkers have faced average premium increases exceeding $1,000 since 2020 and that nearly half a million New Yorkers are completely uninsured. Monroe Shannon of Neighborhood Housing Services of NYC testified that the organization has assisted dozens of homeowners this year with insurance crises, including cases where homeowners faced premium increases of $2,000 or more on fixed incomes. John Crotty of the Community Preservation Corporation testified about the captive insurance model for affordable housing, stating bluntly: "Affordable housing on its current trajectory is over. Not hyperbole. Reality." He argued that without insurance market reform, the City and State of New York lack sufficient subsidy to address the crisis. Sen. Bailey, representing majority Black homeowners in the northeast Bronx and Mount Vernon, asked pointed questions about whether rising insurance costs are driving reverse migration out of New York and threatening generational wealth preservation. Sen. Kavanagh engaged extensively with panelists about the captive insurance model and regulatory obstacles, signaling support for the Insurer Communities Act. The hearing underscored that the insurance crisis threatens not only homeownership affordability but also the viability of the affordable housing stock and the ability of vulnerable populations to maintain stable housing. NEW YORK SENATE COMMITTEE EXAMINES RESIDENTIAL INSURANCE CRISIS, HEARS INDUSTRY CALLS FOR REFORM The New York State Senate's Housing, Construction and Community Development Committee held an extensive joint hearing on November 18 to examine the state's residential property and casualty insurance market, hearing testimony from industry representatives, advocates, and government officials about rising premiums, coverage gaps, and potential legislative solutions. The final panel of industry witnesses—representing independent insurance agents, mortgage bankers, and insurance professionals—largely aligned on key problems facing the market while offering different perspectives on solutions. Travis Wattie of Big I New York, representing 1,500 member agencies and 13,000 employees, cited anecdotal evidence of fraud and improper claim settlements, and called for labor law reform, stronger disclosure requirements for third-party litigation funding, and additional resources for the Department of Financial Services. Bradford Lachut emphasized risk mitigation over compensation, noting that many insurers refuse to write homes with roofs over 20 years old, and advocated for incentivizing safer homes through existing state programs rather than mandates. Joseph Culver of the New York Mortgage Bankers Association outlined short, medium, and long-term recommendations including state subsidies for low-income homeowners, state-backed reinsurance, and formalized building-level mitigation crediting. He noted the dramatic interest rate volatility affecting homeownership costs—from 18 percent in 1981 to 2.75 percent in 2021 to the current 6 percent range. Sen. Kavanagh engaged skeptically with industry representatives about whether the free market alone would produce adequate incentives for risk mitigation. He pushed for formalized discount structures tied to resilience improvements, noting that the state is already spending at least $5 billion on coastal resiliency and will spend more on building improvements. "Shouldn't we be trying to create a structure where incentivizing the best practices and incentivizing all property owners to minimize the harm that we know is coming as extreme weather gets worse?" he asked. Sen. Bailey, chairing the hearing, focused on consumer education, emphasizing that insurance and taxation are the two most misunderstood things in America. He sought input on how to improve public knowledge and encouraged agents to work with customers on available discounts and coverage options. The hearing, which lasted several hours, reflected broader tensions in New York's insurance market: carriers citing climate risk, labor costs, and litigation expenses as drivers of rate increases; industry representatives calling for regulatory and statutory reforms; and legislators seeking to balance market stability with consumer protection and affordability. The committees indicated the hearing was one step in an ongoing process that began in August and will continue, with hopes of eventually producing a consensus report and legislative proposals.