Multiple survey companies’ data show that insurance costs in New York housing have been consistently rising. According to the data analysis firm S&P Global RateWatch, homeowner insurance rates in New York State have increased by 24.4% from 2021 to 2025. The data from the New York City Rent Guidelines Board (NYC RGB) also indicates that the residential insurance costs, including rent-stabilized apartments, saw a 18.7% increase in 2025.
The pressure on affordable housing has become more significant. A survey conducted by Enterprise Community Partners, a large nonprofit housing and community development organization in the United States that has helped preserve 71,000 units of affordable housing in New York City, reveals that insurance costs for affordable housing projects in the city have surged by 169% since 2017. On average, the insurance costs per unit are approximately double compared to the organization’s projects in other parts of the country and elsewhere in New York State.
The rapid increase in premiums is squeezing the operational space of affordable housing. Enterprise Community Partners pointed out that when insurance costs grow faster than housing income, operators may be forced to delay maintenance, reduce tenant services, raise rents, or sell properties, potentially affecting new housing development.
Both the city and state governments of New York have begun to explore ways to reduce costs. The city government announced in June this year an investment of $100 million to establish an insurance plan for affordable housing and rent-stabilized housing, aiming to reduce premiums for participating properties by at least 20%. According to the city’s plan, the initiative is expected to cover around 20,000 housing units by 2027 and expand to 100,000 units by 2030. The plan is still in the preparation phase and has not yet started offering policies.
The state government, on the other hand, is attempting to reduce the reliance of affordable housing operators on traditional commercial insurance through an “insurance captive” approach. In this model, multiple housing operators share some of the risks. The state government has launched a $5 million pilot program to assist nonprofit housing organizations in joining captive insurance groups and has provided a $2 million loan extension to Milford Street Captive this year to expand this model.
For regular homeowners, the state government is primarily focusing on increasing insurance premium transparency and encouraging reductions in residential risks. Starting from August 24 this year, when renewing insurance policies for one to four-unit residences, if the total premium increase exceeds 10% after deducting the increase due to added insurable value, the insurance companies must notify the policyholders of the additional amount and provide a written explanation of the main reasons.
Even if the renewal increase is below 10%, policyholders can request a written explanation from the insurance company. According to the Department of Financial Services, insurance companies must respond within 20 days upon receiving a written request.
Homeowners can also inquire with insurance companies or brokers about whether home disaster prevention measures can reduce premiums. The Department of Financial Services states that measures such as hurricane-resistant doors and windows meeting specific criteria can receive premium discounts, while fire prevention, theft prevention, leak prevention, and roof reinforcement measures may also qualify for incentives.