By Caroline Nagy Associate Director of Housing Policy
Rising insurance costs are threatening the housing affordability and security of renters across the United States: between 2019 and 2024, multifamily buildings in the United States on average experienced more than a 75 percent increase in property insurance costs, while subsidized affordable housing providers have seen even steeper increases of over 100 percent over this time period.
While the issue of availability and affordability for single-family home insurance has received significant attention, spiking insurance premiums are also causing dramatic impacts on rental housing, which is home to over 100 million people in this country, or 35 percent of the U.S. population.
To discuss these issues, Americans for Financial Reform Education Fund hosted a webinar in August 2026 featuring New York City Housing Commissioner Dina Levy, Erich Nakano, Director of Special Projects at the Little Tokyo Service Center in Los Angeles, and Zoe Middleton, the Associate Policy Director for Just Climate Resilience at the Union of Concerned Scientists.
Los Angeles-based affordable housing provider Erich Nagano shared the difficulties he has faced obtaining insurance coverage for the Little Tokyo Service Center. Before 2023, it was able to cover its entire portfolio of 1,300 affordable units by paying one insurance company $800,000 in annual premiums. After its insurer dropped it without an explanation, it had to package together coverage from 19 different insurance companies at a cost of $2.6 million, a 325% increase, even though the center opted to reduce earthquake coverage. Other California affordable housing operators have opted for more affordable policies by lowering their total insured value and increasing their deductibles, which will put them in a more financially vulnerable position if disaster strikes. Nagano’s top priority is for better information from insurers about why they are increasing rates and dropping coverage, and what policyholders can do to reduce their premiums.
New York City Housing Commissioner Dina Levy discussed rising insurance premiums as a major challenge to preserving the city’s affordable housing stock. Ultimately, the City has opted to pursue a novel approach to providing more affordable insurance options to affordable and rent-stabilized apartments through the creation of a City-backed insurance program that will use the City’s purchasing power and absence of profit motive to reduce costs for landlords. While the project is still in its early stages, Commissioner Levy aims to reduce premiums for approximately 100,000 homes by 2030.
Finally, the Union of Concerned Scientists’ Zoe Middleton discussed the impact of Hurricane Harvey and other recent severe storms on Houston, and how insurance challenges are compromising the affordability and adequacy of Houston’s housing stock, leading to a nationally high multi-family foreclosure rate. Middleton emphasized the need for data disclosure laws as a first step towards understanding and mitigating a building’s risk.
For more information about property insurance policy (including a model data disclosure bill), visit our Equitable and Just Insurance Initiative website.