Rewarding Superior Risk Management and Loss Performance

Our award-winning captive insurance company provides property and liability coverage for 40,000 affordable apartments developed and managed by nineteen of the Network's members. Launched in 2004 as the first captive insurance company owned by and operated for nonprofit affordable housing organizations, Housing Partnership Insurance has achieved outstanding performance and been recognized as a leading social enterprise by the Yale School of Management-Goldman Sachs Foundation's Partnership on Nonprofit Ventures business plan competition.

By pooling risk, raising investment capital, and structuring business partnerships with national insurance carriers, Housing Partnership Insurance enables its member-owners to fashion programs that are tailored to meet their needs and priced competitively to reflect their exceptional loss performance. Housing Partnership Insurance has significantly improved insurance terms and saved partner organizations more than $1 million a year in premiums.

The members recognized the significant opportunities to achieve valuable social impact through an insurance captive. First, premiums are variable operating costs in rental properties. Increases can translate directly into higher rents that burden lower-income tenants. Controlling premiums means that rents are more stable, and revenues will not be diverted away from maintenance budgets or tenant services to pay for escalating premiums.

Self-insurance also emphasizes loss control measures. Fewer insured events-damage caused by fires, in particular-translates to better living environments and healthier communities. Finally, earnings generated by the captive's profit-motivated business will, over time, provide dividends to the company owners. The nonprofit housing developers will realize cash and equity capital to pursue their charitable purposes.

For more information, contact Tom Bledsoe.