|Lexington Insurance Company to Insure Tax Credits on Low Income Housing|
New York – August 31, 2010 – Lexington Insurance Company, a Chartis company, today announced the introduction of its Low Income Housing Tax Credit (LIHTC) First Party and Professional Liability Insurance program. The program is designed to protect owners, developers and investors against financial losses arising from the loss or recapture of federal tax credits – granted on low income housing properties in accordance with Section 42 of the Internal Revenue Code.
LIHTC First Party Insurance is a stand-alone coverage that reimburses insureds for the loss of current or future low income housing tax credits. It also provides reimbursement for the recapture of prior years’ tax credits arising from direct physical loss or property damage, provided there is underlying property insurance in force that covers the property loss or damage. LIHTC coverage is structured to allow the insured to cover all such credits or just a portion of them. The insured can elect multi-year policies to cover the credits during the 10-year accelerated payment period.
LIHTC Professional Liability Insurance provides defense and indemnity coverage for errors and omissions resulting from real estate management, such as the failure to qualify housing tenants or the failure to properly prepare the documentation required to secure and maintain tax credits. This coverage is tailored to the unique ownership and management structure of most LIHTC real estate developments and is issued on an annual basis.
“Lexington’s LIHTC insurance program is focused on important areas of vulnerability for owners, developers and investors in low income housing. Traditional property insurance helps to rebuild low income housing properties after a covered event, but it does not provide any coverage for federal tax credits that could be lost while the property is being rebuilt or repaired. On the liability side, traditional E&O policies do not respond to the unique ownership structure of LIHTC real estate developments,” said Lou Frascotti, Senior Vice President of Lexington Insurance Company. “The LIHTC insurance program expressly responds to both of these critical exposures.”
For more information, please contact: Chris Andrews, Product Line Manager of Lexington Insurance Company, at (617) 330-8469 or firstname.lastname@example.org; or Karen O’Reilly, Chief Innovation Officer of Lexington Insurance Company, at (617) 235-8017 or karen.o’email@example.com.
Chartis is a world leading property-casualty and general insurance organization serving more than 70 million clients around the world. With one of the industry’s most extensive ranges of products and services, deep claims expertise and excellent financial strength, Chartis enables its commercial and personal insurance clients alike to manage virtually any risk with confidence.
Chartis is the marketing name for the worldwide property-casualty and general insurance operations of Chartis Inc. For additional information, please visit our website at http://www.chartisinsurance.com. All products are written by insurance company subsidiaries or affiliates of Chartis Inc. Coverage may not be available in all jurisdictions and is subject to actual policy language. Non-insurance products and services may be provided by independent third parties. Certain coverage may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds and insureds are therefore not protected by such funds.