Insurance Rates Rise Sharply for Affordable Housing

Increases of up to 104 percent in insurance rates are squeezing nonprofit affordable housing developers as rates rise around the country.

1 minute read

December 18, 2023, 12:00 PM PST

By Diana Ionescu @aworkoffiction


Base Camp Village

A project built by the Base Camp Village nonprofit in Butte County, California. / via Shelterforce

Rising insurance costs are burdening affordable housing developers, who often pay 10 to 15 percent more than market-rate developers, according to a report by Nancy Marshall-Genzer for Marketplace.

One insurance co-op, the Housing Partnership Insurance Exchange, saw rate increases between 34 percent and 104 percent for next year. “Whether it’s flooding or fires on the West Coast, we believe that those are adding inflationary pressure to our premiums,” said Paul Bernard, vice chair of the Exchange. For the nonprofits that manage affordable housing, this often means shifting funds from resident programs. 

As extreme weather events like wildfires and flooding make the market riskier in many parts of the country, insurers have raised rates and started leaving some states, such as California, altogether.

Friday, December 15, 2023 in Marketplace

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Bird's eye view of manufactured home park.

Manufactured Crisis: Losing the Nation’s Largest Source of Unsubsidized Affordable Housing

Manufactured housing communities have long been an affordable housing option for millions of people living in the U.S., but that affordability is disappearing rapidly. How did we get here?

March 25, 2025 - Shelterforce

U-Haul truck on road with blurred grassy roadside in background.

Americans May Be Stuck — But Why?

Americans are moving a lot less than they once did, and that is a problem. While Yoni Applebaum, in his highly-publicized article Stuck, gets the reasons badly wrong, it's still important to ask: why are we moving so much less than before?

March 27, 2025 - Alan Mallach

Close-up of rear car bumper in traffic on freeway.

Research Shows More Roads = More Driving

A national study shows, once again, that increasing road supply induces additional vehicle travel, particularly over the long run.

March 23, 2025 - Road Capacity as a Fundamental Determinant of Vehicle Travel

Red crane in foreground with New York City skyline in background.

Lawsuit Aims to Stop NYC’s ‘City of Yes’ Zoning Reforms

A lawsuit brought by local lawmakers and community groups claims the plan failed to conduct a comprehensive environmental review.

45 minutes ago - New York Post

Cars parked and plugged in at an EV charging lot in Santa Monica, California surrounded by palm trees.

EV Chargers Now Outnumber Gas Pumps by Nearly 50% in California

Fast chargers still lag behind amidst rapid growth.

March 28 - Inside EVs

Construction workers on a suspended platform are installing thermal insulation on the facade of a modern apartment building, improving energy efficiency and reducing heat loss during cold weather.

Affordable Housing Renovations Halt Mid-Air Amidst DOGE Clawbacks

HUD may rescind over a billion dollars earmarked for green building upgrades.

March 28 - Bloomberg CityLab