HUD Squeezes Fair Housing Lawsuit Settlements From Two Insurance Companies Over Allegations That They Denied Landlords' Requests For "Umbrella Coverage" For Rentals Considered To Be "Subsidized" & "Low-Income" Housing; Practice Had Discriminatory Effect Based On Race, Nat'l Origin, Say Feds

From the U.S. Department of Housing & Urban Development (Washington, D.C.):

• The U.S. Department of Housing and Urban Development (HUD) announced agreements with two insurance companies in Ohio and Florida settling allegations the companies violated the Fair Housing Act by denying insurance coverage to properties that contain “subsidized housing” and “low-income housing.”

• Read the conciliation agreement with McGowan and Company, based in Fairview Park, Ohio.

• Read the conciliation agreement with Mack, Mack & Waltz Insurance Group based in Deerfield Beach, Florida.

• The Fair Housing Act makes it unlawful for providers of housing-related services or products, including insurance providers, to discriminate because of race, color, religion, sex, national origin, disability, and familial status.
  
  The agreements stemmed from a Secretary-Initiated complaint HUD filed after receiving reports the insurance companies’ policies and practices had a discriminatory effect because of race and national origin. Specifically, HUD’s complaint alleged that the companies refused to provide umbrella coverage, which provides additional liability coverage when an insured’s other primary policy limits have been reached, to properties containing subsidized or low-income housing.
  
  Under the agreements, McGowan and Company will remove “subsidized” and “low-income” from its list of prohibited properties, spend $100,000 to affirmatively market its services and products to the affordable and low-income housing markets and provide fair housing training for management and staff that review and/or approve applications for insurance. Mack & Waltz will spend $10,000 to affirmatively promote its services in affordable and low-income housing markets, and provide fair housing training for its management and staff.

Source: HUD Reaches Settlement Agreements With Ohio And Florida Insurance Companies Accused Of Violating Fair Housing Act.