Despite hurricanes, insurance may not cover mold

[Guest guest]

http://www.bankrate.com/brm/news/insurance/20040909a1.asp

Despite hurricanes, insurance may not cover mold

By Pat Curry • Bankrate.com

In the aftermath of Hurricane Charley and Hurricane Frances, most of

Florida has been mopping up and drying out in a state of discomfort --

during summer, in the subtropics and often without power, which

means no air conditioning. It's wet, hot, steamy and dirty. Combined,

it's the perfect environment for mold to grow.

Homeowners who have filed insurance claims from the hurricanes might

not know that there's a good chance their policies don't cover mold

damage.

By way of explanation, molds are fungi. There are tens of thousands

of different species. According to the Centers for Disease Control,

the most common household forms are Cladosporium, Penicillium,

Alternaria and Aspergillus. Some people are sensitive to molds and

can experience allergy-like symptoms such as a stuffy nose, irritated

eyes and wheezing. Severe reactions, the CDC says, can include fever

and shortness of breath.

On a homeowner's insurance policy, mold damage is only covered if it

is the result of a covered peril. As that relates to the hurricanes,

a typical homeowner's policy would cover mold damage if mold grew

because the storm damaged a roof or blew out windows and rain

drenched the ceiling and walls, according to the Insurance

Information Institute. However, if mold is the result of flooding or

storm surge, it's excluded. That type of damage is generally covered

under a federal flood insurance policy.

In recent years, mold has found a prominent place in the news because

the number and dollar amount of insurance claims and lawsuits

involving mold in buildings have skyrocketed. As a result, many

insurers in several states limit the amount of coverage available for

mold cleanup or won't cover mold damage at all.

The exclusion itself is nothing new, says Goldberg, assistant

general counsel for the American Insurance Association. Damage from

mold, fungus, dry rot and termites typically isn't covered because

it's considered to be the result of a failure to maintain the home.

The limits were put in place after the explosion of claims and

lawsuits. In nearly every state, Goldberg says, insurance companies

filed with insurance regulators for a dollar sub-limit on mold

remediation.

It's important to understand what the sub-limit addresses, Goldberg

says. If you have wet drywall, insulation, carpet, furniture and the

like that needs to be replaced, that's water damage, not mold damage.

If the insurer needs to pay for something extra because of mold, such

as installing a vapor barrier, or if someone had to put on a

biohazard suit to do cleanup, that's where the sub-limit kicks in, he

says.

Mold needs five things to grow, says Jeff Bishop, technical advisor

for the Institute of Inspection, Cleaning and Restoration

Certification, a nonprofit organization for the flooring inspection,

floor covering, mold remediation and disaster restoration industry.

The first is food, and your house is full of it in things like

lumber, the paper on the drywall and the paper covering insulation.

It also needs moisture, the right temperature, stagnant air and time.

" The longer you wait, the worse it gets, " he says.

That's not good news for victims of Hurricane Charley who lost power

for days or even weeks, or couldn't return to their homes until they

got an OK from disaster officials.

An ounce of prevention

In determining whether to pay a mold remediation claim, insurers will

look at whether the homeowner performed the appropriate cleanup to

minimize damage, assuming it was safe for them to go back in the

house, says Kathi Giaramita, a water-damage restoration and mold

expert at Memphis-based ServiceMaster Clean.

If there's standing water, homeowners should try to remove it, along

with anything that's sitting on a wet surface, such as furniture,

area rugs, book cases or cardboard boxes.

" If they sit wet, the damage will be much worse to correct, "

Giaramita says.

Some items will be easier to clean than others, Bishop says. If

clothing can be washed, it can be restored, he says.

" Anything you can run through a dishwasher, you don't have to worry

about, " he says. " The heat in a dishwasher completely kills germs and

bacteria. "

It will be very difficult for the average homeowner to dry out

stuffed materials, such as mattresses, box springs, upholstered

furniture, carpet and padding. If ceilings are sagging, have them

taken down before they collapse. Water in the ceiling generally means

that water has run down walls as well. That may be harder for a

homeowner to find.

Mold can even grow on concrete block houses built on cement slabs if

there is a layer of dust. To prevent mold growth, Bishop says to

spray it off with detergent, dry it and " get some air movement on

it. "

(For more information on cleaning up after water damage, read the

Water Damage Recovery Guide at the Institute for Business and Home

Safety Web site.)

Pass on the test

One way to save money during the cleanup, Giaramita says, is on

testing for mold.

" I know the environmental testing companies will come out of the

woodwork, but testing your home for mold is completely unnecessary, "

she says. " If you have mold, you can smell it. You just need to clean

it up. There's no reason to know what it is or what color it is. You

just need to know where it is and the techniques to clean it up. In

those instances where it is a covered loss, let the insurance company

make that decision to do testing. "

Oh, and for the record, Giaramita says, just because you smell mold

doesn't mean you've been exposed to deadly toxins.

" Unless you or someone in your family has an allergy, there is no

reason to fear going back in your home, " she says. " If you go into

the house and your eyes are itching and you're sneezing, that's a

pretty good sign to stay with a friend or in a hotel. You don't need

to be afraid you'll catch a fatal disease. "

-- Posted: Sept. 9, 2004