2022 Affordable Housing Risk Pool (AHRP) Renewal Information
All Affordable Housing Risk Pool (AHRP) policyholders should have received the 2022 insurance quote packets by now; if not, please contact Torey Plummer as soon as possible.
You are no doubt very familiar with the insurance and reinsurance crisis. AHRP has been forced to make numerous changes to how we deliver insurance coverage based on external market conditions. The largest obstacle AHRP faced was meeting the reinsurance industry requirement of common renewal dates. In the past, policies renewed on the date they were first issued. All those policies have been modified to expire on January 1, 2022. All policies that renewed on dates other than January 1st are a short term/partial year policy designed to meet the new requirement of a common renewal date and charged a prorated premium accordingly. The 2022 renewals will all be charged a full year premium, expiring on January 1, 2023.
AHRP, like all other insurance providers, has had to allocate more of the increased expense of procuring reinsurance for the pool to our policyholders for 2022. AHRP has experienced tripling of the cost of reinsurance in the past two years. These costs could not be absorbed by the pool, and unfortunately, large increases were required to assure the solvency of the pool.
The premium you will see on your renewal for 2022 may also be impacted by tier shifts. Tiers were established for the pool to allocate more of the pool’s expense to those policies that have higher losses, much the same way any insurance company operates. In addition, the property deductible for both HARRP and AHRP will increase from $2,500 to $5,000.
Thank you for your support of AHRP and the risk sharing/pooling concept. Rest assured, we are looking at ways to re-structure the manner in which the pool operates in light of the seemingly endless amount of pressures bore by market conditions.
Executive Director & the Synchrous Team