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Insurance Companies Just Say 'No' to Covering Mold |
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Thursday, 08 August 2002 |
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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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website)
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