What is tenant discrimination insurance?
Landlords can be sued for discrimination despite their best efforts in fair housing compliance policies and practices. Discrimination lawsuits have increased over the past few years causing landlords to spend significant time and money to defend themselves against claims of discrimination. While some lawsuits may prove to have no merit, (e.g., a nuisance lawsuit) nevertheless the landlord must still defend against them in court or agree to a settlement outside of court at some cost to the landlord.
Tenant Discrimination Insurance coverage is a way to transfer the risk of discrimination lawsuits to a third party, an insurance carrier. Tenant Discrimination Insurance is a claims-made insurance that can protect a landlord in the event of a discrimination, harassment, or wrongful eviction lawsuit. Coverage will include actual or alleged acts of discrimination or harassment against tenants and third parties. A landlord’s standard general liability insurance policy does not provide this type of coverage.
The insurance covers the damage amount the landlord is legally obligated to pay as well as expenses and costs of defending the lawsuit. .As long as the claim is made within the policy period or within the specified time period as stated in the policy, the insurance will provide coverage up to the policy limits. Tenant Discrimination Insurance does not cover property damage, bodily injury, personal injury (unless the injury was a result of wrongful discrimination), or criminal or malicious acts.