Hidden mold growth causes costly problems for home buyers

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Cold facts of mold

Hidden growth causes costly problems for home buyers

Benda

Record Searchlight

UNHAPPY HOMEOWNERS - The Volkenants said they got more than they bargained

for after moving into their Cottonwood home in December.

Photo by: Brad Garrison

LEAKY ROOF:

Laborer Ralph Zambrano replaces wood in Tom and Jo-Anne Volkenant's

Cottonwood home. Dark streaks caused by condensation stained the ceiling. So

far, the Volkenants have paid more than $5,000 to repair the damage.

DAMAGED GOODS: The rotted-out sheeting in the Volkenants' home needed to be

replaced.

February, 10 2002 - 2:13 a.m.

The country home in Cottonwood Jo-Anne and Tom Volkenant bought in December

wasn't supposed to be a fixer-upper.

" We thought we were buying a house with a little bit of water damage and we

ended up with a mold nightmare, " Jo-Anne Volkenant said.

The couple has already spent more than $5,000 to repair a leaky roof that

they said was rotted out by years of mold damage, which they claim wasn't

disclosed to them before they bought the 1,900-square-foot home.

Soon after moving in, the couple discovered mold growing inside their home.

" The insulation was so wet you could wring it out. We removed the insulation

and discovered black mold, " Volkenant said.

Had they known the extent of the damage, the Volkenants - who moved to the

north state from Simi Valley - would have never bought the $167,000,

14-year-old home.

" We have done a fixer-upper before. You only do one in a lifetime, "

Volkenant said.

The Volkenants could have benefited from state legislation that was signed

into law last fall.

The law requires the disclosure of the presence of mold in buildings,

including homes. The bill, Senate Bill 732, was authored by Sen. Deborah

Ortiz, D-Sacramento.

Ortiz's bill also directs the state Department of Health Services to

research and develop standards for permissible levels of mold. A task force

will be formed to establish the guidelines.

The California Realtors Association in January started including a mold

disclosure statement in the paperwork buyers receive before purchasing a

home, a voluntary move prompted by the Ortiz bill.

" There is a booklet that we give all buyers and sellers, which discusses

environmental hazards, and mold is the latest addition to that book, " said

Brad Garbutt, president of the Shasta County Association of Realtors.

The booklet addresses such topics as what molds are, how people are exposed

to them, and whether you should be concerned about mold in your home.

Mold has caught the attention of the insurance industry, trial lawyers and

consumer groups alike.

Last year, a Texas family was awarded $32.1 million by a jury in a

mold-related lawsuit against a major insurance company. Also last year, a

Sacramento jury awarded a family nearly $3 million in another mold-related

case.

In California, some insurance companies have asked the state for permission

to write tougher mold exclusion language into homeowner's policies.

Volkenant said their insurance company would not cover the mold damage,

adding that the company has since decided to drop them.

" If the damage occurred when we owned it, we would have been covered. But

because it's an undisclosed pre-existing condition, nobody will touch it, "

Volkenant said.

Jerry Davies, spokesman for the Personal Insurance Federation of California,

said a sudden accidental discharge of water, such as a burst pipe, has

always been covered in home policies.

" Where it won't be covered is when there is water that has been leaking for

a long time, the homeowner knows about it and doesn't act, or fails to

report it, " Davies said from Sacramento.

on is a Los Angeles attorney who specializes in toxic mold

cases. He said insurance companies have had recent large verdicts go against

them, so they want to make it more difficult for homeowners to receive

compensation from mold damage.

" Any time the insurance industry is hit with large losses, they

automatically try to exclude the losses the following year, " on said.

Davies said insurance companies simply want specific language on mold - when

it should or should not be covered. He noted the industry is encouraged that

Ortiz's bill calls for the development of mold standards.

" That will put some scientific facts into the mold debate, " Davies said.

" What you have now are a lot of emotions. "

Garbutt agreed that a lack of standards makes it difficult to determine just

what are permissible levels of mold in a home. Also, there aren't many

companies around licensed to test for mold.

on said typically you would want to hire an industrial hygienist to

do the testing.

" It can be expensive, anywhere from $1,000 to $7,000 per home to conduct

testing, " on said. " But the cost to abate the mold could run in the

tens of thousands, maybe higher. "

Ken , owner of Accurate Home Inspections in Palo Cedro, said testing

for mold isn't among the items on his checklist when he does an inspection.

" When we do see it, we would take a note and advise to have it further

evaluated, " said.

In hindsight, Jo-Anne Volkenant acknowledged they were too trusting. She

said they used a home inspection report that was done for a previous

escrow - which fell through - on their Cottonwood home, a practice they

discovered is illegal. That report stated the damage was caused by built-up

condensation. Attic vents had been installed and the problem had been fixed,

Volkenant said.

" When I sold my house (in Simi Valley), I paid an agent a little over

$20,000 for the privilege of selling my house, " Volkenant said. " For that

kind of money, I expect them to know the law and do everything correctly.

" It should not be the responsibility of the person who is buying the house

to know the law. That is why we pay the experts the money. "

Reporter Benda can be reached at 225-8219 or at dbenda@....

Sunday, February 10, 2002