Advisory Task Force for Mold-Related Claims confronts mold risk

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http://www.amarillonet.com/stories/033002/tex_panelcon.shtml

Saturday, March 30, 2002

7:10 a.m. CT

Panel confronts mold risk

AUSTIN (AP) - Insurance companies should respond to water damage claims

within 24 hours and homeowners should be equally prompt in responding to

water damage because mold can begin growing and spreading within 48 hours of

a leak, a state task force report says.

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

on insurers to voluntarily streamline their claims handling procedures so

they can deal more quickly with problems.

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

agency staff is finalizing the report and will start distributing it in

early April.

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

State Insurance Commissioner 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 their

premiums on homeowners' policies by up to 200 percent. The largest companies

also 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 insurance companies.

" 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, " Dan Lambe of Texas Watch.

Industry officials argued that the recommendations should be optional. Jerry

s, president of the industry group Southwestern Insurance Information

Services, said Friday that insurers respond to these type of claims as

quickly as possible but noted that the real problem lies with having a

sufficient number of experienced remediators and claim representatives.

" Circumstances beyond the control of insurers, such as having enough trained

remediators in Texas can hinder quick response efforts, " s said.

Another issue the group studied was how consumers can prevent mold in the

first place, said Jon Opelt, Houston director of Citizens Against Lawsuit

Abuse.

One way to do that is to maintain levels of humidity below 60 percent by

venting bathrooms and dryers, not blocking air conditioner vents, and using

air conditioners and de-humidifiers, a working draft of the report said.

Also, homeowners should get their homes inspected regularly for indications

and sources of indoor moisture, the report said.

Because slow prolonged water leaks may not be covered in the future, " it

becomes extremely important for homeowners to know the causes of mold, know

how to properly inspect their homes for water leaks and take appropriate

preventative steps to avoid water leaks and mold occurrence, " Opelt said.