Homeowners Unaware of Mold Cover Exclusions

January 14, 2005

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NU Online News Service, Jan. 14 11:28 a.m. EDT—With 43 states now

permitting mold damage exclusions on policies, most homeowners are

not sure if their insurance covers such claims, according to a

recent survey.

In a nationwide poll of 1,362 homeowners commissioned by the

Environmental Assurance Group, 64 percent said they were not sure of

their mold damage protection, and 13 percent said their policies did

include mold coverage.

The survey was conducted by Interactive.

EAG principal said that homeowners could be in store

for major financial loss if mold cleanup is necessary.

In states where coverage is not excluded, " the deductibles are so

high, or the restrictions to filing a claim so extreme, that it is

coverage in name only, " Mr. said.

A total of 52 percent of U.S. homeowners are also not sure if mold-

resistant practices and products were used in the construction or

remodeling of their most recent home, while 34 percent said mold-

resistant practices and products were not used. Fourteen percent

said mold resistant techniques and materials were used.

Mr. said since so few homeowners are covered, awareness of new

anti-mold practices has become increasingly important.

He suggested people building homes should look into mold-resistant

building products such as inorganic non-woven house wrap, fiberglass

insulation, raised floor systems and paperless drywall.

" Paper is food for mold, and without food mold cannot live, " Mr.

said.

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