Three New York legislators said they plan on pushing bills next year that would bar property insurers from requesting information about subsidized housing, a practice that discriminates, an NYC news outlet reported.
The Gothamist, a non-profit news organization affiliated with public radio station WNYC, said that its recent investigation had found a pervasive practice by insurers across the New York metropolitan area: Insurers routinely ask landlords and building owners if their tenants’ rent payments are subsidized by federal Section 8 vouchers or municipal programs – then decline to write coverage for the buildings if the answer is “yes.”
The news organization said it examined insurance applications and interviewed brokers, landlords and fair housing groups.
Statutes bar properties from rejecting subsidized tenants, but no prohibition applies to insurance companies, the Gothamist reported.
Now, three New York Assembly members have pledged to extend the restrictions to include property insurers. Assembly Member Linda Rosenthal, D-Manhattan, called the practice “reprehensible” and one that reinforces stereotypes.
Fair housing groups have filed suit against insurers for the practice in other states and have reached settlements after showing it discriminates against people of color and people with disabilities, the news group noted. California is one state that bans insurance carriers from asking about tenants’ sources of income.
Even with the practice, insurance premiums on subsidized or income-restricted apartments climbed by 43% from 2019 to 2021 in New York, the news outlet noted. Travelers told the organization that it had updated its application process seven years ago and does not include questions about housing subsidies. Two other large insurers did not respond to questions.
The New York state legislative session begins in January.
Photo: The scene of a fatal fire at an apartment building in the Bronx in 2022. (AP Photo/Yuki Iwamura)
Topics Carriers Legislation New York Property
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