Homeowners, Insurance Officials Face Off On Mold

[Guest guest]

http://www.msnbc.com/local/wtvj/A1272911.asp

Homeowners, Insurance Officials Face Off On Mold

(see video of public hearing and story at

http://www.nbc6.net/news/1585200/detail.html)

PLANTATION, Fla., 3:02 p.m. EDT July 31, 2002 - Homeowners attending a

public hearing with state and insurance officials Tuesday voiced anger over

what they said is a growing mold problem in Broward County.

According to Florida Treasurer and Insurance Commissioner Tom Gallagher, the

purpose of the hearing was to obtain public input and hear testimony

concerning mold coverage in homeowners' and commercial residential insurance

policies. The homeowners claim mold in their homes is making them and their

families sick, and that state and insurance agencies aren't doing much about

it.

The meeting at Plantation City Hall brought together homeowners and members

of the state's Department of Insurance along with representatives of some of

the state's largest insurance companies.

Leah Mikulski was one of several homeowners who testified on Tuesday. She

said mold in her home was threatening the health of her 3-month-old

daughter. Mikulski and other homeowners testified that their mold problems

were so bad, they were forced to abandon their property after insurance

companies refused to pay for clean-up.

Many other homeowners complained that they have called in inspectors, only

to have the insurance company and the state insurance agency refuse to help.

Others said they have filed lawsuits or complained to builders, all to no

avail.

Doctors say some mold can be toxic, even causing respiratory problems.

According to state insurance officials, the number of mold claims is rising

in Florida. State Farm, the state's largest insurer, reported 700 mold

claims in 2001, up from just 83 claims in 2000.

Representatives of the insurance industry and the state said they don't know

why the number of claims is rising. Officials at the hearing did say they

plan to meet again to try and determine what companies and the state can do

to help homeowners.

Insurance officials said that if something catastrophic happens in a

neighborhood such as a water main break or severe storm, insurers will cover

property affected by mold. But if the mold problem grows little by little,

as a result of an air condition leak for example, those claims are not

covered.

Following additional hearings in Tampa and Orlando in August, insurance

commissioners say they will decide whether to direct insurance companies to

change their policies.

To date, the Department of Insurance has received nearly 200 filings by

insurance companies requesting exclusion of mold, or limited coverage of

mold, in personal residential, commercial residential and commercial

property policies.