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06.2014

In June, 2014, Relman, Dane & Colfax filed two complaints against property/casualty insurers for alleged insurance discrimination based on race and disability. The claims allege that insurer restrictions on the number of Housing Choice Voucher (Section 8) tenants who can live in the insured’s rental units have a disparate impact on these protected bases. HCV tenants are lower income, and receive rent subsidies from HUD to live in private market housing. In most urban communities, HCV tenants are disproportionately people of color or disabled. In one matter, the insurer (Lloyds of London) canceled the client’s insurance after the insurance inspector realized that HCV tenants lived in the property. In the other matter, the insurer (Great American) refused to renew the insurance of one housing provider and increased the premium of another due the presence of HCV tenants in their properties. 

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