Insurers told to explain changes in mold coverage

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Insurers told to explain changes in mold coverage

The Texas Department of Insurance (TDI) is requiring all property and

casualty insurance companies to " fully and clearly " explain any changes in

the types of coverage and premium costs to their customers.

Recent changes in homeowner polices offered by major insurers such as

Allstate and Farmers Insurance have caused some confusion among consumers,

says Jim , spokesman for TDI. As a result, Texas Insurance Commissioner

Montemayor has issued a directive telling insurance companies to fully

explain the differences in their policies.

Most of the changes are taking place as a result of skyrocketing mold claims

that led many insurers to discontinue carrying comprehensive homeowners

polices known as HO-B. The commissioner has negotiated an agreement with

many insurers to carry a newly improved HO-A policy that will cover some

water damages to homes but not as fully as the old HO-B policy, says.

" Many of the insurers are switching to a less-comprehensive policy than

people are used to and in some cases it is including a rate increase, "

says. " We have had a lot of calls from consumers who are confused and

unhappy about the situation. "

More information on how to handle water damage claims can be found on the

TDI Web site at http://www.tdi.state.tx.us. For free copies of a brochure on

the mold issue call 1-800-599-7467.