tenant discrimination

Tenant Discrimination

Any property owner can be sued for discrimination.

Cost:

Minimum Premium for $1 million limits as low as $2,000.

Limits as low as $100k are available with minimum premium of $1,000.

Options for 5% co-insurance and a $0 deductible, or $5k deductible with no co-insurance.

Risks are rated on location, occupancy, square footage and unit count.

Common Objections:

“I have this coverage through my EPLI.”

Some insureds assume they have coverage under the 3rd party EPLI coverage, but a stand alone Tenant Discrimination (TD) policy offers much more robust coverage.

EPLI policies tend to have higher deductibles and the average Tenant Discrimination claim is $100,000 or less, so if your insured has a $25,000 or $50,000 deductible on their EPLI policy, they will have to pay much more out of pocket than the cost of a TD policy with a first dollar attachment point.

Claim Example:

Five disabled residents of a Section 8 apartment complex filed charges with HUD alleging disability, age and sex discrimination. The primary spokesperson for the group is a “40-something” year old female amputee who rides a scooter due to her disability and her weight (± 300 lbs). All five women claim that they have been verbally and physically harassed because of their disabilities (visual impairments, cognitive disabilities, epilepsy) by other tenants and by management and that they are discriminated against because of their age (they are younger than the predominantly elderly population of the apartment complex).

The Plaintiffs brought a claim against the Insured property owner, alleging that the property owner failed to show them an available apartment. The Plaintiffs claimed that other potential tenants that were of a different race than the Plaintiffs were shown properties to rent that the Plaintiffs were not shown. The legal expense was $72,000. The damages were $55,000.