Insurers Limit Coverage For Mold Damage

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Insurers Limit Coverage For Mold Damage

by Hartford Courant, October 27 2005

http://www.imakenews.com/pureaircontrols/e_article000480687.cfm?

x=b5W2G39,bvtv58G

Mold is a common plague of homes, especially after the seemingly

limitless rain and flooding Connecticut has seen lately. Insurance

coverage of mold damage, though, is limited.

Insurers began restricting mold coverage several years ago in

homeowners' and business insurance policies nationwide, after mold

claims mushroomed in Texas and some other Southern and Western

states.

The Connecticut Insurance Department doesn't allow home or

commercial property policies to exclude or limit mold coverage for

damage stemming from fire or lightning.

But the department lets insurers limit coverage for mold damage,

testing, and cleanup to $10,000, if the mold results from some other

cause that the policy would normally cover. That could be, for

instance, a tree damaging a roof and letting in rain that leads to

mold.

Mold is subject to your regular deductible, and insurers aren't

permitted to set an additional one for mold.

Homeowners insurers aren't allowed to exclude coverage for mold

under the liability section of your policy, either. But they can

limit it to $50,000.

Commercial insurers can exclude or limit liability coverage for mold.

And by the way, insurers define mold as including any kind of

fungus, wet or dry rot, and bacteria.

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Pure Air Control Services, Inc.

1-800-422-7873