Section 8 Housing - NYC

Discussion in 'P&C Insurance Forum' started by dahonored1, Sep 6, 2017.

  1. dahonored1
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    dahonored1 Expert

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    Anyone have any experience writing section 8 housing buildings? I feel like standard carriers won't write those type of risks. I currently have a building written through AMTRUST and the owner is applying to be a section 8 housing. Would that affect anything?
     
  2. adjusterjack
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    adjusterjack Guru

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    "Redlining" is alive and well in the insurance business.

    An adverse underwriting decision based solely on Section 8 occupancies smacks of illegal discrimination since Section 8 recipients are typically lower income ethnic minorities.

    https://en.wikipedia.org/wiki/Redlining
     
  3. mr_furly
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    I just had a nonprofit habitational risk denied by Amtrust in IL.
    25% of the buildings were section 8.

    They stated they were not in the market for "housing development / property management".

    Start looking for markets now, because its a pain in the ass to place.

    I actually logged on here to see if there was a thread on this.
     
  4. jemelton
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    Wrong. The owner of the building can be discriminated against because the company has the right to doso.
     
  5. adjusterjack
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    For legitimate underwriting reasons.

    But not for racism thinly disguised as legitimate underwriting reasons.

    Did you even read the article on redlining?
     
  6. djs
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    djs Super Moderator Moderator

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    I'm sure the section 8 authority would be happy to know that it is perceived as a racist benefit. Truly, its not, from what I see, it is one of the most multi-cultural benefits that exists.

    Not sure if it would be redlining or not, but I do understand your point. Denying it just because it is section 8 probably doesn't work, but there are probably legit ways to prevent writing these risks.

    Denying one building is never redlining from what I understand. Denying one neighborhood could be. Of course, a lot of section 8 housing tends to be in the same area.

    Dan
     
  7. adjusterjack
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    adjusterjack Guru

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    So, Dan, you're one of those people that attribute things to people that people didn't actually say. Way to go, Dan.

    :no:
     
  8. djs
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    djs Super Moderator Moderator

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    Somedays.... but not today. I just read your comment differently then you meant it apparently. Fair enough, I appreciate you setting me straight.

    My apologies for misunderstanding your comment.

    Dan
     

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