GuideOne Insurance announced today that it has reached an “amicable resolution” to a discrimination complaint filed against the company by two fair-housing groups in 2007. As part of that resolution, it will no longer offer special coverage for homeowners that is based on their religious affiliation.

The National Fair Housing Alliance (NFHA) and the Fair Housing Advocates Association (FHAA) had filed a lawsuit in federal court against the West Des Moines-based insurer claiming that GuideOne’s FaithGuard homeowners’ insurance policies were discriminatory to non-Christians and non-believers by offering extra benefits for Christian members at no added cost. The company has offered the products as an endorsement to homeowners’ policies in 18 states since 2005.

The FaithGuard homeowners’ product offers additional benefits such as waiver of the deductible for losses of personal property “while in the care, custody and control of the church” and a doubling of medical limits for an injury incurred at a church-related event at a member’s home. The company also offers a mortgage protection endorsement that provides up to $7,500 in mortgage payments if a policyholder is injured, which is available to customers regardless of their religious beliefs.

“When we looked closely at our coverage, we found 85 percent of claims were related to mortgage protection, so we thought we would put the mortgage protection right in the basic homeowners’ policy,” said Tom Farr, GuideOne’s corporate counsel. “And since the church-related endorsements (weren’t frequently used), we dropped them.” The new homeowners’ policies will be phased in for new and renewing customers over the next year, he said.

As a result, the NFHA and FHAA have dismissed their legal claims.

“GuideOne’s representatives were very thoughtful and receptive to our concerns,” NFHA President and CEO Shanna Smith said in a press release. “Once we got together and discussed the matter, it became clear we were all working toward the same goal.”

GuideOne will continue to offer its FaithGuard endorsement for automobile policies in 18 states, Farr said. That product provides added coverage for churchgoers if they are involved in an accident on their way to or from church.