Redlining refers to the the practice of discrimination based on the racial makeup or character of a person's neighborhood. It is most often used in the context of extending credit or providing insurance coverage.
“Insurance redlining” is discrimination in the marketing, underwriting and pricing of homeowners insurance to persons owning homes in black neighborhoods.
Those who claim redlining by an insurance company have commonly been:
- Denied homeowners insurance or cancelled/non-renewed by an insurance company because of the racial composition of the area in which their home is located;
- Charged higher premium rates for homeowners insurance because of the racial composition of the area in which their home is located; and,
- Not offered the best homeowner’s insurance coverage offered by an insurance company (usually replacement value coverage) because of the age, value or other characteristics of their home.