During a recent government meeting, discussions highlighted the significant impact of rising insurance costs on both homeowners and multifamily properties, particularly affecting low and moderate-income families. Doctor Sen emphasized the challenges faced by nonprofit developers and public housing agencies due to substantial annual increases in housing costs. Data from the Virginia Housing Agency revealed that out of 119 local jurisdictions, 105 experienced double-digit annual increases in housing costs from 2021 to 2023, with nine jurisdictions reporting triple-digit increases, notably in the Hampton Roads area.

The conversation also touched on the multifamily insurance market, with Doctor Sen noting that similar dynamics observed in single-family insurance markets are likely present in multifamily markets as well. However, a lack of granular data has hindered a comprehensive analysis of these trends. The need for systematic data collection across all insurance segments was underscored, as low-income individuals are disproportionately affected by rising premiums.

Additionally, concerns were raised regarding the regulatory oversight of insurers, particularly in Florida, where a high insolvency rate among certain insurers was noted. The current risk-based capital requirements, established in the 1980s, were criticized for being inadequate in addressing modern risks such as wildfires and hurricanes. The meeting concluded with a call for improved regulatory practices to better protect consumers and ensure the stability of the insurance market.