Two fair housing groups said today they had filed a suit against a church and home insurer for allegedly violating federal housing law by showing bias in favor of Christians in selling its products.

The announcement was made by National Fair Housing Alliance (NFHA) in Washington and the Fair Housing Advocates Association (FHAA), Akron, Ohio.

Named in the action was GuideOne Mutual Insurance Company, West Des Moines, Iowa, which was accused of offering and advertising homeowners insurance products in a discriminatory fashion based on religious status and a preference for Christians.

The insurer said the suit is unmerited and it does not discriminate.

According to the groups, the federal Fair Housing Act prohibits discrimination or preferential treatment by homeowners insurance companies on the basis of race, color, national origin, religion, sex, disability, or familial status.

The organizations said they had filed suit after a Dec. 13, 2006 complaint to the U.S. Department of Housing and Urban Development concerning GuideOne's practices drew no action.

NFHA and FHAA said their investigation of GuideOne's homeowners insurance policies and practices found that the company advertises its insurance products in a discriminatory fashion by offering special terms and conditions to “churchgoers.”

The groups said that since 2005, GuideOne has marketed a special endorsement under the trade name “FaithGuard,” which is currently available in 19 states, including Ohio, and 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.

According to the NFHA and FHAA, among the benefits the company offers churchgoers is a waiver of insurance deductibles if there is a loss to personal property while it is in the “care, custody and control” of the insured's church.

They said the insurer also 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.

Shanna L. Smith, NFHA president and chief executive officer, said in a statement: “In promoting and describing these products on its Web site, the company indicates that it protects the 'most important part of the church–the congregation.' By using such faith-specific language as 'church' and 'congregation,' GuideOne is intentionally discouraging persons who attend synagogues, mosques, temples, or other institutions of worship. GuideOne is also excluding persons who are not members of any organized religion or have no religious beliefs.”

Advertising relating to housing, lending or insurance that shows a preference or limitation because of religion or because a person has no religious beliefs is a violation of the federal Fair Housing Act, according to the NFHA and FHAA.

They said their investigation 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, said NFHA and FHAA, 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.

According to the groups, the company “prefers and targets Christians and churches.”

“GuideOne Insurance blatantly violates the letter and the spirit of the Fair Housing Act by providing extra protections to churchgoers or Christians while not providing those same protections to persons of other faiths,” said Mr. Smith.

She accused the company of practices that “have the direct effect of denying equal treatment and opportunities to persons who are not Christian, who are not religious, or who do not attend church or participate in religious activities.”

“The discriminatory policies of GuideOne, combined with the availability of FaithGuard in 19 states, translates to an abundance of Fair Housing violations every day,” said Vince Curry, executive director of the Fair Housing Advocates Association.

NFHA and the FHAA's suit was filed by Relman & Dane law firm in Washington, D.C.

The insurance company's response said that “GuideOne Insurance's FaithGuard home insurance product is in no way discriminatory and we strongly believe this complaint to be baseless and without merit.

“In fact, before the FaithGuard product was introduced, it was examined and approved by insurance departments in each of the 19 states where it is offered.

“GuideOne makes this product available to everyone–whether they attend church or not, and without regard to religion or denomination. No one has ever been denied the product based on church membership or attendance.

“There are no religion-related underwriting eligibility guidelines to obtain the product, and the company does not consider whether someone is a churchgoer before issuing a policy.”

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