Among the flurry of decisions handed down by the U.S. Supreme Court in the final days of its session was a ruling on Friday in Texas Dept. of Housing and Community Affairs v. Inclusive Communities Project, Inc. that will allow disparate impact claims in some circumstances under the Fair Housing Act.

While the Big “I” supports fair housing practices, the association and many other participants in the insurance market are concerned that the ruling could have a negative impact on the homeowners insurance market.   

After the Court handed down its decision, the Big “I” released a statement by Charles Symington, Big “I” senior vice president of external and government affairs, noting that “the use of disparate impact analysis has the potential to undermine valid and beneficial underwriting of homeowners insurance policies throughout the country and that federal and state laws already prohibit unfair discriminatory practices and pricing.” It is also important to note that the U.S. Department of Housing and Urban Development (HUD) has no regulatory authority over the homeowners insurance marketplace, which is well regulated at the state level.

The association will continue to stay engaged with decision-makers in Washington, D.C. as HUD works through the implementation of any changes.

Margarita Tapia is Big “I” director of public affairs.