Can an insurer deny homeowner insurance due to the operation of a day care facility?

When assessing whether an insurer can deny homeowner insurance based on the operation of a day care facility, it's important to consider the regulatory framework surrounding insurance practices. The insurance industry is governed by rules that mandate fair treatment of policyholders. One of these principles is that insurers should not engage in practices that are deemed discriminatory or unfair against policyholders.

Operation of a day care facility could potentially increase the insurer's exposure to risk, such as liability for accidents that occur on the property. However, simply having a day care does not inherently justify denials of coverage, as this could be viewed as an unfair practice. Insurers typically must provide coverage options and may only deny coverage if there are specific, legitimate reasons that adhere to regulatory standards, rather than blanket denials based solely on the presence of a day care.

Therefore, denying homeowner insurance solely due to the operation of a day care facility would indeed be considered an unfair practice, making the assertion that insurers are not permitted to deny such coverage correct. This reinforces the importance of ensuring that risk assessments are conducted fairly and in accordance with established standards that protect consumers.