Authors: Susan J. Patelson,Robby Kunz
When marketing submissions for Section 8, Housing and Urban Development (HUD) affordable and low-income housing risks, brokers may receive declinations for a variety of reasons. Often times, underwriters decline these types of risks due to the bad reputation unfairly associated with them.
Typically, underwriters are taught that Section 8, HUD, affordable, and low-income housing are all high risk accounts that they should avoid. The stigma associated with these assets means that coverage can be hard to find, overly restrictive, expensive, and insured through secondary markets. Through a deeper understanding of these assets, brokers can help to dispel some of these negative myths, and achieve superior outcomes for their insureds.