[nagdu] Insurance Policy Restrictions as a Defense for Refusals to Make a Reasonable Accommodation

[Ginger Kutsch]

Insurance Policy Restrictions as a Defense for Refusals to Make a Reasonable
Accommodation 

 

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, DC 20410-2000 

June 12, 2006 

OFFICE OF FAIR HOUSING AND EQUAL OPPORTUNITY 

MEMORANDUM FOR: FHEO Regional Directors 

FROM: Bryan Greene, Deputy Assistant Secretary for Enforcement and 

Programs, ED 

SUBJECT: Insurance Policy Restrictions as a Defense for Refusals to Make a
Reasonable Accommodation 

This memorandum responds to requests for guidance on how HUD investigators
should examine Fair Housing Act "reasonable accommodation" cases where a
housing

provider cites an insurance policy restriction in denying a request from a
person with a disability to reside in a dwelling with an assistance animal
that

is of a breed of dog that the landlord's insurance carrier considers
dangerous. In the referenced cases, the housing providers stated that their
insurance

carriers will either refuse to cover their properties, substantially
increase the cost of coverage, or adversely change the terms of their
policies if

these animals are allowed to occupy dwellings. 

As with any request for a reasonable accommodation, the request should be
evaluated on a case-by-case basis. HUD provides the following guidance to
assist

in that evaluation. 

According to the Joint Statement on Reasonable Accommodations, an
accommodation is unreasonable if it imposes an undue financial and
administrative burden

on a housing provider's operations. If a housing provider's insurance
carrier would cancel, substantially increase the costs of the insurance
policy, or

adversely change the policy terms because of the presence of a certain breed
of dog or a certain animal, HUD will find that this imposes an undue
financial

and administrative burden on the housing provider. However, the investigator
must substantiate the housing provider's claim regarding the potential loss

of or adverse change to the insurance coverage, by verifying such a claim
with the insurance company directly and considering whether comparable
insurance,

without the restriction, is available in the market. If the investigator
finds evidence that an insurance provider has a policy of refusing to insure
any

housing that has animals, without exception for assistance animals, it may
refer that information to the Department of Justice for investigation to
determine

whether the insurance provider has violated federal civil rights laws
prohibiting discrimination based upon disability. 

www.hud.gov 

espanol.hud.gov