NYC basements may not be insurable soon

Lenders may be wary to underwrite the properties

TRD New York /
Jan.January 25, 2018 10:40 AM

The remains of burned homes after Superstorm Sandy on October 31, 2012 in the Breezy Point neighborhood of Queens (Credit: Getty Images)

You might not want to bank on basement apartments boosting the city’s affordable housing stock — according to one of Europe’s largest insurers, such units won’t be insurable in the next 10 years.

“If you go much further to 2020, 2030, we can clearly say that at a scenario between 3 and 4 degrees, it’s not insurable anymore,” said Thomas Buberl, chief executive officer of AXA SA, during a panel at the World Economic Forum. “Your basement shop in New York, your basement shop in Mumbai will at this point not be insurable anymore.”

New York and other coastal areas are more vulnerable to flooding, which is expected to increase with the rise in sea level, extreme weather events and global warming. Some properties may become too risky for companies to underwrite new policies, Bloomberg reported.

Mayor Bill de Blasio first floated the idea of legalizing basement apartments when he took office in 2014. [Bloomberg] — Kathryn Brenzel 


Related Article

arrow_forward_ios

All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag

Rent reform is propelling a new wave of New York and California investors to Miami (Credit: iStock)

Rent reform in New York, California propels new wave of multifamily investors to Miami

Aggressive iBuyer Opendoor acquires title and escrow company

Here are 5 takeaways from TRD’s deep dive into Eklund-Gomes’ national expansion

Nashville broker posts oral sex selfie alongside kitchen and pool listing pics

From left: Rory Golod, Robert Reffkin and 1328 Fulton Street (Credit: Google Maps)

Compass is growing rapidly in UWS and Brooklyn

Elevated risk: Malfunction at NYCHA is putting public housing residents at greater risk of being injured in its elevators

How do brokers get listings from the Department of Justice?

arrow_forward_ios