Affordable housing developers and managers in New York have established Milford Street Association Captive Insurance, based in Vermont. The collective allows members, who must be New York-based with capped rents and government financing, to pool their money to cover claims, potentially reducing insurance costs and improving building conditions for tenants. Milford Street provides up to US$1 million in primary coverage and US$5 million in excess liability coverage. 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. A report by the New York Housing Conference found that insurance rates for affordable apartments in the city almost doubled between 2019 and 2023, with the average cost per unit rising from US$869 to US$1,770. The report noted that insurance costs now represent 22 per cent of monthly rent for an extremely low-income household’s one bedroom affordable apartment, highlighting a growing threat to affordability.
