Improved Insurance Coverage and Stability

The Housing Partnership Insurance program offers two master policies: one covering property exposures and the other covering liability claims.

Lexington Insurance, a subsidiary of the AIG Companies, writes all the policies for the program and guarantees the payment of claims. The Housing Partnership Insurance reinsures Lexington for the first $500,000 on each property and liability loss, and for aggregate claims that exceed a specified level. It provides for reinsurance to cover losses above these limits.

The Housing Partnership Insurance arranges performance-based contracts with experienced third-party firms to deliver services to its member-owners for underwriting, claims administration, loss prevention, financial management, and customer service.

The Housing Partnership Insurance has been capitalized through an innovative structure that combines investment from its shareholders, Housing Partnership Ventures, and the Merrill Lynch Community Development Company.

The Housing Partnerhip Insurance is exploring the feasibility of offering additional group programs for professional liability, Directors and Officers, and umbrella insurance.