Improved Insurance Coverage and Stability

The Housing Partnership Insurance Exchange 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. HPIEx 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.

HPEIx 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.

HPEIx was initially capitalized through an innovative structure combining investment from its subscribers, Housing Partnership Ventures, and the Merrill Lynch Community Development Company.