Makeup of mold panel is disputed

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Makeup of mold panel is disputed

Some say that an affected homeowner should be named

By Ty Meighan

AUSTIN - The creation of a state advisory task force on mold-related claims

has created even more controversy for Texas Insurance Commissioner

Montemayor. Montemayor recently formed the 19-member task force to develop

recommendations on how insurers should respond to claims for water and mold

damage. Task force members represent indoor air quality experts, consumers,

bankers, Realtors, builders, contractors, adjusters and insurers.

Although he appointed consumer group representatives to the task force,

Montemayor did not include any homeowners who have had problems with mold.

That doesn't sit well with some homeowners who have fired off angry letters

to Montemayor and state lawmakers.

''I ask that you at once appoint a homeowner to the task force who has

personal experience with the toxic mold problem,'' Jo Hayman, a Dallas

homeowner, wrote to Montemayor. ''Would you consent to brain surgery if the

neurosurgeon was not on the team?''

But Montemayor said he has heard plenty from homeowners with mold

experiences, and the task force includes members who will look at ways to

prevent such problems.

''It's fair, balanced and it's good for what it's supposed to be doing,'' he

said of the task force membership.

Mold claims increase

The task force is among Montemayor's efforts to address the continuing

mold-related insurance claim problem in Texas.

For the past two years, the number of mold-damage claims filed by Texas

homeowners and the costs to clean up the damage have increased.

Insurance companies say they can't afford to pay such expenses and some have

stopped offering the standard policy in Texas.

On Nov. 28, after months of research and several public hearings, Montemayor

issued an order that allows most homeowners to keep some protection against

mold.

But expensive procedures, such as air testing and disposal of

mold-contaminated items, have been eliminated from the standard homeowners'

policy.

Protected losses are limited to repair or replacement of property damaged by

water or mold that results from a water leak. Homeowners can purchase

additional coverage against mold damage.

'Best practices'

Montemayor appointed the advisory task force to assist in developing

suggested " best practices " for handling and processing claims for water and

mold damage.

The group is expected to submit its recommendations in March.

''When repairing a water leak and handling any problem with mold, consumers,

insurers, contractors and adjusters should be aware that certain practices

may reduce losses, " Montemayor said. " This task force will identify those

standards.''

But one group that represents homeowners said Montemayor made a major

oversight in his appointment of task force members.

''It is ludicrous to appoint a task force to deal with this state's biggest,

most important consumer issue without actual consumer participation,'' said

Janet Ahmad, president of HomeOwners for Better Building in San .

''What is needed are consumers that have actually dealt with the problems,

gone through the horrors of mold contamination, disruption of family life

for year and have seen firsthand the pitfalls of dealing with health issues

and insurance claims.''

Montemayor appointed representatives from two consumer groups - Texas Watch

and Consumers Union. He also appointed Rod Bordelon of the Office of Public

Insurance Counsel, a state agency that represents consumers in insurance

matters.

Forced to sue

Ahmad and others also are upset that Montemayor appointed a member of

Citizens Against Lawsuit Abuse to the committee. That group works to revamp

the civil justice system and reduce the number of lawsuits.

Many homeowners in Texas say they have been forced to sue homebuilders and

others because of the mold problem in their homes.

Task force members

Bob , Enviro-Mold, Fort Worth

B. , Texas Apartment Association, Austin

Rod Bordelon, Office of Public Insurance Counsel, Austin

Jerry Edler, JE Adjuster, San

Fisher, Texas Association of Builders, Austin

Bo Gilbert, Independent Insurance Agents of Texas, Austin

Bob Huxel, Farmers Insurance, Austin

, Associated Plumbing Heating Cooling Contractors of Texas,

Austin

Dan Lambe, Texas Watch, Austin

LeBrocq, Technology Servicing People, Houston

Jo Betsy Norton, Allstate Insurance, Austin

Jon Opelt, Citizens Against Lawsuit Abuse, Houston

Bill Pouland, Travelers Insurance, Dallas

Ruggiero, State Farm Insurance, Austin

Rob Schneider, Consumers Union, Austin

Dr. Quade Stahl, Texas Department of Health, Austin

Larry Temple, Texas Mortgage Bankers Association, Austin

Torrez, UT Institute for Air Quality, Austin

Ron , Texas Association of Realtors, Austin

Contact Ty Meighan at 512-334-6640 or meighant@...

January 18, 2002

Copyright 2002, Caller.com. .