Avoiding the Pitfalls of Tenant Discrimination When Controlling Squatters | Insurance business America
Expert warns of “significant legal and ethical implications”
Insurance News
By Kenneth Araullo
As squatter laws are scrutinized for potential abuse, residents and lawmakers across the United States are pushing for changes to protect both property rights and the well-being of vulnerable populations. This change in the law coincides with an increase in tenant discrimination complaints, highlighting the complexity of housing rights and the need for equitable solutions in real estate practice.
Amid these evolving legal landscapes, the increase in tenant discrimination cases signals a pivotal moment for the industry, requiring increased vigilance and revised policies from all involved.
Lisa Rodriguez (pictured above), Director and Senior Vice President at Brown & Riding, emphasizes the importance of proactively managing these risks through appropriate insurance coverage and a deep understanding of legal responsibilities.
“Consulting with experts is essential to identify potential problems or risks in your business. Speak to your insurance agent about your current insurance coverage. Ask whether the insurance coverage is comprehensive and adequately protects against discrimination claims,” Rodriguez said.
Tenant discrimination remains a major problem in the residential and commercial real estate sectors and is characterized by the unfair treatment of individuals based on protected characteristics such as race, color, religion, national origin, gender, age, disability, and others.
“In both areas, discrimination against tenants not only undermines equal opportunity principles but also has significant legal and ethical implications for landlords, property managers and businesses,” she said.
Complaints are reaching unprecedented heights
According to Rodriguez, recent data from the National Fair Housing Alliance (NFHA) points to a troubling trend: 33,007 fair housing complaints were filed in 2022 alone – the highest number in a single year, representing a 5.74% increase over the previous year and corresponds to an increase of 14.9%. Increase in the last two years.
“In 2022, disability discrimination claims accounted for 53.68% of complaints filed and racial discrimination accounted for 18.97% of complaints filed.” “82 percent of all complaints filed were for rental housing,” she said. “It is important to note that local state laws may establish additional protected categories, reflecting the dynamic nature of anti-discrimination regulations across jurisdictions.”
The legal landscape that applies to this area includes several federal laws designed to protect tenants and ensure equal housing opportunities. The Fair Housing Act prohibits discrimination in the sale, rental, and financing of housing on a variety of grounds, including race, color, religion, sex, marital status, national origin, and disability.
Title VI of the Civil Rights Act of 1964, meanwhile, prevents discrimination in programs receiving federal assistance based on race, color, and national origin. Both the Americans with Disabilities Act of 1990 and the Rehabilitation Act of 1973 prohibit discrimination against people with disabilities. The Architectural Barriers Act of 1968 and Title IX of the Education Amendments Act of 1972 further emphasize accessibility and prohibit gender discrimination in federally funded programs.
“Various federal laws work together to protect renters from discrimination and ensure that housing options remain fair and free of bias,” Rodriguez said.
Protection from discrimination obligations
Recent court cases highlight the ongoing challenges and consequences of discrimination in real estate. In particular, the Trident Mortgage Company case was settled with a significant financial commitment to address disparities in lending practices.
Trident agreed to establish a loan grant fund worth at least $18.4 million and pay a civil penalty of $4,000,000 following allegations of race and color discrimination in Philadelphia between 2015 and 2019.
“Real cases and legal claims involving tenant discrimination provide a clear perspective on the challenges of maintaining fair housing practices,” said Rodriguez. “These cases, often brought to light by organizations like the National Fair Housing Alliance (NFHA), shine a light on discriminatory practices and underscore the importance of understanding the legal implications of these violations.”
To mitigate the risks associated with tenant discrimination claims, Rodriguez urged real estate companies to adopt thorough and effective policies and practices. Tenant liability insurance plays a crucial role in this context, providing protection against claims related to discrimination, harassment or unlawful eviction. This insurance coverage is critical to addressing legal costs and financial losses resulting from such lawsuits.
“Discrimination claims by a tenant and/or their guests against landlords and property managers may not be covered in an insured’s EPL or GL policy, and if coverage exists, the policy form may not be all-inclusive,” she said.
“Tenant discrimination liability insurance is specifically designed to protect landlords and property managers in situations where discrimination, harassment or unlawful eviction occurs. This coverage extends to legal costs and financial losses resulting from discrimination claims by a tenant and their guests, providing housing providers with essential protection against such claims,” Rodriguez said.
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2024-05-03 15:06:10
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