Re: Mold becomes toxic issue to homeowners, insurers

[Guest guest]

>>>If you find it harder to get a homeowner's policy next month, you could

blame mold.<<<

======================

Pretty soon the insurers will run out of exclusions and will no longer

have anything to insure. They will lose the average insurer who can no

longer afford to have insurance. The housing market will diminish

because you can't have a mortgage without insurance. The banks will go

under because they won't have prospective homeowners. And it goes on.

Where are our high insurance dollars going? Are they going to the

handful of underwriting CEOs?

Barth

NEW: TOXIC MOLD SURVEY: www.presenting.net/sbs/sbssurvey.html

[Guest guest]

PLEASE NOTE THAT MOLD IS AN INVISIBLE TOXIN THIS IS A PRODUCT I DISTRIBUTE CALLED H2ORANGE2

please look it up in search for there have been about 30 studies done and this has been probably the safest and most effective product on the market today due to the fact that mold will be removed without starting a respitory crisis write me for more info thanx tom

bherk@... wrote: http://www.bayarea.com/mld/mercurynews/business/3127757.htmWed, Apr. 24, 2002Mold becomes toxic issue to homeowners, insurersSTATE FARM WON'T ISSUE NEW POLICIESBy Deborah LohseMercury NewsIf you find it harder to get a homeowner's policy next month, you couldblame mold.Yes, mold.State Farm, the largest insurer in California representing 22 percent of themarket, decided last week that it would no longer write new homeownerpolicies in the state starting May 1. While that's partly due to pastlosses, it's also in large part due to the rising cost of mold-relatedclaims.Across the country mold has become a toxic problem, with homeowners, rentersand building tenants alleging that a severe form of the fungus in theirhomes or offices is causing symptoms from allergies to lung bleeding.For insurers, the issue threatens to become their next asbestos: a healthhazard they'd never anticipated that could potentially cost billions ofdollars in both claims and lawsuits.For consumers, the issue is likely to increase the cost of homeownersinsurance, already poised to go up as much as 25 percent for reasons relatedto past underpricing and rising construction costs. In Texas, which has hadthe most claims increases in the nation, rates have already nearly doubledfor many homeowners.In California, where the rise in claims comes second only to Texas, insurersare scrambling to stem their losses from mold.Covering cleanupCurrently, most insurers in the state cover mold cleanup if it is part of aclaim for sudden and accidental water damage, such as a pipe bursting. Mostinsurers exclude mold if it's not part of a water damage claim, such as moldthat has grown over years. Allstate, the third-largest insurer in the state,in January capped the amount it will pay for mold cleanup at $5,000, even ifit's part of a water-damage claim.More than 200 insurers have now applied to the state's insurance departmentfor permission to further restrict mold coverage, leaving out mold caused byfaulty maintenance by the homeowner or even in some cases mold from waterdamage.A bill making its way through the state legislature would essentiallyrequire insurers to keep the level of coverage that's now standard, andforbid many requested restrictions. The bill, despised by the insuranceindustry, passed the Senate insurance committee Monday and now must beapproved by the Senate and Assembly to become law.State Farm says its moratorium on new policies is temporary but indefinite.A spokesman said it is not a reaction to the proposed legislation but aimsto avoid further losses until it rebuilds a financial cushion. State Farmhas 1.5 million home policyholders in California.The reason for the explosion of mold claims is a matter of bitter debate.Some consumer lawyers and activists blame certain new construction materialssuch as stucco, mold-friendly glue for wood floors, recycled newspaper usedas a backing for sheetrock, and impermeable vinyl wallpaper. Some claim thatnewer energy-efficient buildings are airtight, which doesn't allow water todry.Insurers say consumer lawyers have invented an epidemic and have exploitedgenerous insurance laws in states like Texas, where insurers until recentlywould cover even costs from longstanding mold.Still, mold has its high-profile victims, including entertainer EdMcMahon -- who blames the fungus for sickening his family and killing hisdog Muffin -- and Brockovich, the famous legal assistant who helped winhundreds of millions of dollars from PG & E over environmental contamination.Water-damage claims involving mold are soaring.Farmers Insurance, the second-largest insurer, is getting 800 such claims amonth in California, up from 200 earlier in the year. State Farm said theaverage water-damage claim for the region that includes Silicon Valley wasrecently nearly $3,400, up from $2,300 in 1999.Very expensiveMold is an especially expensive problem for insurers for many reasons. Forone, they are more often evacuating homeowners during mold cleanup andpaying for temporary housing to avoid allegations of endangering health.Also, contractors who don't want to be sued over their own work sometimeswon't repair water-damaged homes unless their work is inspected by so-calledindustrial hygienists. Such inspections can cost $3,000 to $5,000 apiece,said Hartwig, chief economist for the Insurance InformationInstitute.``The expenses associated with adjusting the claim can outstrip the cost ofpaying the claim itself,'' said Hartwig.Emanuel Enes, a San claims team manager for State Farm, said he'sseeing a marked increase in public awareness about mold, including someparanoia. For some policyholders who discover mold, the fungus is blamed for``every ache and pain, even though they might have had it before thedamage.''Skyrocketing ratesAlready, mold is contributing to skyrocketing insurance rates for home andapartment or condo builders, who sometimes get sued years down for allegedlyfaulty construction that causes mold. Some insurance brokers report thatliability insurance costs for construction clients have gone up 500 percentor more, while others have difficulty finding coverage at all.The mold surge comes as California homeowners are already facing increasedhomeowners rates of 5 percent to nearly 25 percent. Allstate has recentlyrequested a 22 percent increase in homeowners rates.--------------------------------------------------------------------------------Contact Deborah Lohse at (408) 271-3672, or dlohse@....FAIR USE NOTICE:This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. 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