Church Insurer Sued for Policy Favorable to Churchgoers

Here's an interesting lawsuit from my old line of work:

The National Fair Housing Alliance and Fair Housing Advocates Association conducted an investigation of GuideOne’s homeowners insurance policies and practices and found that the company advertises its insurance products in a discriminatory fashion by offering special terms and conditions to “churchgoers.” Since 2005, GuideOne has marketed a special endorsement under the trade name “FaithGuard,” which is currently available in 19 states, including Ohio. The benefits of FaithGuard are not available to persons who suffer a covered loss or disability while engaged in similar activities but who are not religious, who do not belong to a church, or who do not attend church or participate in religious activities. Among the benefits to churchgoers, the company waives insurance deductibles if there is a loss to personal property while it is in the “care, custody and control” of the insured’s church; pays church tithes or donations if the insured suffers a loss of income from a disability; and doubles medical limits for an injury received while sponsoring an activity conducted on behalf of the church.

The investigation also confirmed that GuideOne routinely inquires into the religious affiliation of all applicants for homeowners insurance and has even created a special application form which asks for the applicant’s religious denomination. Such an inquiry is illegal under the federal Fair Housing Act. Clearly, GuideOne, through its FaithGuard endorsement, provides its products and services on the basis of religion and religious status. More specifically, the company prefers and targets Christians and churches.

Following the investigation, a complaint was filed with the U.S. Department of Housing and Urban Development on December 13, 2006. After nearly a year and no resolution in sight, both fair housing organizations opted to proceed with a federal lawsuit.

There's another media report here.

GuideOne was at one time called Preferred Risk and I can remember when they sold auto policies for non-drinking drivers and used to advertise with inserts in the back of hymnals. I could tell you some stories about this company (and in fact, I did).