Wall Street Journal Volume 1 | Issue 18 | August 8, 2002
Top National News
P. D1; Oster, Christopher

Mold claims by homeowners have become such a huge concern for the insurance industry that State Farm Mutual Automobile Insurance has eliminated mold coverage in 33 states and Allstate has limited cleanup costs to $5,000. After forking out $1.3 billion to remove mold and repair related damage in homes last year, insurance companies have stepped up their efforts to obtain regulatory approval to drop the coverage. Rep. John Conyers (D-Mich.) has responded with legislation that would create a federal insurance fund to cover homeowners' mold claims, and a House committee recently held a hearing that focused on scientific research on mold and its economic impact on claims and litigation. Meanwhile, homeowners are facing the possibility of having insurers drop them for filing mold-related claims.
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