Faster response may ease mold risk

March 31, 2002

March 29, 2002, 9:24PM

Associated Press

DALLAS -- A state task force reports that mold claims from homeowners could

be reduced if insurance companies responded to water damage within 24 hours.

The task force, which examined the widespread mold problem in Texas, called

on insurers to voluntarily streamline their claim-handling procedures so

they can deal more quickly with water leaks in homes that could result in

mold.

The panel said homeowners need to be equally prompt in responding because

mold can begin growing and spreading within 24 to 48 hours of a leak.

" Whether or not your water damage is a covered claim, you should take

immediate action to stop the leak and dry the area to prevent mold growth

that could cause further damage to your home and affect your family's

health, " the report said.

Jim , spokesman for the Texas Department of Insurance, said the report

is being finalized and will be distributed in April.

" The goal is to distribute these recommendations as widely as possible so

that insurance companies and consumers know what to do when a water claim is

involved, " said.

The special Advisory Task Force for Mold-Related Claims was appointed by

State Insurance Commissioner José Montemayor in January as mold damage

losses in Texas soared, costing insurance companies hundreds of millions of

dollars.

In response to the increasing losses, insurers have increased premiums on

homeowners policies and some have revised their policies to reduce or

eliminate mold coverage.

Representatives of two consumer groups said the recommendations would have

more impact if they were mandatory for insurers.

" Unless we can enforce these practices and make sure insurance companies are

responding quickly to water claims, then the recommendations are just words

on paper, " said Dan Lambe of Texas Watch.

Jerry s, president of industry group Southwestern Insurance Information

Services, said Friday that insurers respond to claims as quickly as possible

but noted the real problem lies with having enough experienced remediators

and claim representatives.

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