Insurance denials fuel racial segregation, suit alleges

May 17, 2016
The National Fair Housing Alliance filed suit against a major insurance company Tuesday, alleging it refuses to insure buildings where tenants pay rent with public vouchers, a violation of local and federal housing laws.
     Travelers Indemnity Co. has consistently denied commercial building owners habitational insurance — critical insurance for multi-unit building owners that covers tenant liabilities — according to the lawsuit, filed in US District Court.
      Connecticut-based Travelers said the company does not comment on pending litigation.
     The denials of insurance are exacerbating a lack of affordable housing in Washington, said Shanna Smith, president of the National Fair Housing Alliance. That’s because building owners are refusing to rent to residents who use vouchers, since it makes it more difficult to obtain insurance, she said.