U.S. Department of Housing and Urban Development Reaches Settlement Agreements with Ohio and Florida Insurance Companies Accused of Violating Fair Housing Act






January 26, 2017


Washington, DC - - (January 26, 2017) - - 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.”

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.

People who believe they have experienced discrimination may file a complaint by contacting HUD’s Office of Fair Housing and Equal Opportunity at (800) 669-9777 (voice) or (800) 927-9275 (TTY). Housing discrimination complaints may also be filed by going to www.hud.gov/fairhousing, or by downloading HUD’s free housing discrimination mobile application, which can be accessed through Apple and Android devices.


Information source: U.S. Department of Housing and Urban Development