Distinguished Programs Launches Affordable Housing Program

April 3, 2007

Distinguished Programs, an insurance program developer that specializes in products for the real estate industry, has rolled out a national property and liability program geared to increase the availability of “market level” insurance coverage for the affordable housing industry.

The program, which includes all-risk property, liability and umbrella protection, focuses on: low-to-moderate income, privately-owned, multi-family housing where more than 20 percent of the rental income is government subsidized. The product is designed specifically for the needs these property owners face. One of the key features is the Business Income portion of the policy. Unlike a standard property form, it covers loss of both rents and government subsidies. The program is underwritten by standard, A-rated carriers and is now available to independent agents and brokers in 46 states.

“We studied this market segment carefully and started writing the business with a limited number of agencies that specialize in affordable housing,” says Carla Vel, Distinguished Programs’ chief operating officer. “Our data and experience indicate that this market segment has not been treated fairly by many insurers. Despite dramatic changes in the affordable housing industry in the past 20 years, underwriters are still reluctant to write these accounts. As a result, well-maintained properties with quality management and safety programs are often relegated to the E&S market. Owners are forced to settle for policies that offer “below-market” coverage. We saw a real opportunity to reach out to an underserved market.”

Source: Distinguished Programs, www.distinguished.com

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