Moldy home problem may cause headache

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May 28, 2007

Moldy home problem may cause headache

http://www.metrowestdailynews.com/homepage/x539254861

By J. Manuse/Daily News staff

Dizziness may be one symptom caused by mold growing in the damp corners of your

home, but it could also be your insurance policy causing the problem.

This much is clear: Scientists have not yet found a causal link between mold

growth and serious illness, but have found an association between so-called

" sick homes " and respiratory problems, according to the Indoor Air Quality

Association Inc. of Rockville, Md.

In his book, " The Homeowner's Guide to Mold, " Pugliese of Atlanta says

on top of the respiratory problems, mold can cause nervous system woes, such as

headaches and tremors; depression and memory loss; fatigue, lack of energy;

dizziness; nausea; low-grade fever; skin rashes, itching, welts or hives; and

changes in or suppression of the immune system.

None of the symptoms of mold has ever been scientifically proven, and none

disproven, said Lessner, spokesman for the Property Casualty Insurers

Association of America in Des Plaines, Ill.

During a mold hysteria in the late 1990s and early 2000s, insurance companies

paid out millions of dollars to homeowners embattled by mold, he said. A jury in

Texas awarded Melinda Ballard $32 million in a mold damage lawsuit against

Farmers Insurance Company, but it was later reduced on appeal to $4 million plus

interest and legal fees.

In Natick, Zinck and family are now asking The Hanover Insurance Group of

Worcester for $300,000 to demolish their mold-infested home on Appleton Drive

and start fresh. The insurance company wants to give them $127,000 to clean up

the existing home.

The Zincks' case, now at a standstill, dates back to before insurance coverage

for mold changed, but is still ongoing in a new insurance environment, making a

resolution and settlement amount unclear.

Anyone facing a new mold-related claim could end up with a lot less or no

insurance payment, depending on how they approach the issue.

" As science settled down, a summary is: If you have certain types of mold in

your home, it ought to be removed, " Lessner said. " In terms of what the

insurance industry ought to pay for, it varies state-by-state. "

Currently in Massachusetts, insurers must provide coverage of $15 million for

commercial properties and $10,000 for personal policies. They must offer

optional coverage for $20,000 and $50,000 and optional extended liability up to

$100,000, according to Lessner. Companies can charge what they want for the

optional coverage, but the story does not end there.

Massachusetts is one of 46 states as of October 2006 that have adopted an

insurance industry standard to limit mold coverage from homeowners insurance

policies, according to the Insurance Information Institute in New York.

The limitation allows insurers to exclude coverage for losses caused by mold and

wet and/or dry rot unless the condition results from a " covered peril, " the

institute says.

For example, the costs of cleaning up mold caused by water from a burst pipe or

roof damage are " covered peril " under your insurance policy. Mold caused by

excessive humidity, leaks, condensation or flooding is a maintenance issue for

property owners to cover on their own, according to the institute.

Pugliese, a former insurance executive who wrote the book on mold, now helps

homeowners fight their insurance company to get covered for mold damage. In an

interview, he said the " covered peril " clause is key for homeowners looking to

get covered for mold damage.

" Don't start screaming about mold to your insurance company, because you only

have $10,000 of coverage, " Pugliese said. (Remediating a mold claim could cost

at least $25,000.) " You have to start with a water claim and call the insurance

company right away. "

Insurance companies have emergency services they can send out to help in such

circumstances, but Pugliese said to watch what they do.

" You know it soaked up the walls if the guy pulls up the carpet and dries it, "

he said. " If the sheet rock is soaking wet they have to dry it out properly.

They need to remove the base boards, remove the sheet rock and insulation until

it's dry. Anyone doing a dry-out should run dehumidifiers as well as fans. "

Pugliese also noted that bleach does not kill mold, it just bleaches the color

out of it. Keeping your house dry is the only way to keep mold away, he said.

Next on the list of cautions is remediation companies looking for your dollars,

he said.

" If someone says, 'You have mold, you have the bad stuff' - throw him out, " he

said. " There's a lot of mold con artists out there. "

" If he's asking to see your insurance policy, that's the guy you want, " he said.

" He's looking to get paid and he should get paid. "

On the other end of the problem, there are many ways to renew your home to

prevent the return of mold, but the keys are keeping your home well-ventilated

and preventing moisture build-up, he said.

After all, moisture is how mold grows in the first place - especially when the

spores are already there.

( J. Manuse can be reached at amanuse@... or 508-626-3964.)