Mold Takes Hold

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Aug 11, 2002

Mold Takes Hold

By JO-ANN JOHNSTON

jfjohnston@...

Photo by: DAVID KADLUBOWSKI

Fuld, general manager at Air Quality Environmental in St.

sburg, checks a slide for mold and other airborne spores to find the

source of respiratory problems in a home.

Any way you look at mold in Florida - either as a legitimate health threat

or as an overblown nuisance - you've got to figure this icky mess will cost

somebody. Insurers say they are getting socked with claims on homeowners'

insurance for mold damage in unprecedented numbers. State Farm, for

instance, said the number of claims jumped from 90 in 2000 to 337 in 2001.

Claims can run into the tens of thousands of dollars, so we're talking about

more than the cost of Lysol to spray on shower tiles.

Insurers, homeowners, regulators and state legislators are debating who will

be financially responsible for mold damage, under what circumstances

insurers should be liable and whether it is fair to put dollar limits on

such claims.

Mold has swelled into a big financial issue in the last few years in other

states that, like Florida, attracted building booms: Texas, California and

Arizona.

Homeowners complain their mold infestations often started in hard-to-detect

places, behind walls on the backside of plasterboard, under carpets.

Sometimes, the mold spills out to an interior wall through cracks.

Things get really bad when the mold reaches a home's air-handling system and

hops a ride to the living quarters. People in mold-contaminated homes

complain of allergies, headaches, and more serious ailments, such as

breathing problems and memory loss.

Scientists recommend building materials like plasterboard be thrown out when

they are infected with mold: It's just impossible to eradicate the mold from

a porous surface.

Florida's Mold Policies

Although Florida data is not available, a bellwether example of mold's cost

comes from Texas, according to the Insurance Information Institute, a trade

group. The average cost or getting mold out of a Texas house hit $35,000

this year.

The cost of handling mold claims in Texas, where more forms of mold damage

are covered than in Florida, added an average of $444 to homeowner's

policies in 2001, up from $23 in 2000.

Several insurance companies in this state have asked the Florida Department

of Insurance to cap the amount they have to pay on mold claims at $10,000.

Currently, mold damage in Florida is covered only when the mold can be

traced to damage from a ``covered peril,'' like a hurricane. That means if a

storm blows off part of your roof, allowing rain in, and mold takes hold

inside your walls, you're covered.

But if a pipe inside a wall develops a leak onto plasterboard and triggers a

mold infestation you're on your own.

The insurance department, which regulates carriers in Florida and approves

or rejects rate increases, wants some public comment injected into this

muddle. It will hold a forum in Tampa this month, the third in a series

hosted around the Sunshine State. About 300 people attended the first one in

Plantation in July.

One Homeowner's Experience

Lois Hekker, a homeowner from Sarasota, said she might come to the Tampa

forum. Hekker, a real estate agent who represents buyers, bought a home in

Sarasota in 1987 and says her story is a cautionary tale for people near the

water.

Her house sits in a community built in the 1950s overlooking Siesta Key.

``It was the view that settled my soul,'' she said.

For years, the property was fine. Drainage ditches carried moisture away

from the house, she said. Then, she said, some changes were made to

neighboring properties in the early '90s that funneled storm water onto her

property. ``I get all the flooding for the entire community,'' she said.

She started getting the water damage in late 1993. Mold followed into the

wall behind her den. She argued with her insurer, State Farm, over the

claim. State Farm, she said, wouldn't pay, citing alterations on adjacent

properties as a complication causing the flooding.

The insurer then dropped her, forcing Hekker into the state-run pool that is

operated for people who can't get property insurance on the private market.

Her insurance cost went up from $750 a year to $4,000, she said, with a

$2,500 deductible.

Hekker hasn't been able to get a solution to what she sees as the original

cause of the problem, alterations to the neighboring flood control

mechanisms. State Farm declined to comment on the dispute.

Meanwhile, Hekker still has exterior repairs to make as a result of

flooding. She has replaced the wall and tile floor in the affected area

twice at her own cost, which she estimated at about $5,000.

Still, the mold comes back because of continued exposure to moisture, she

said, causing her to have headaches. Her adult son cannot visit the home

because his throat seems to close up, she said.

``I can't sell this house,'' she lamented, because no one would want it with

the problems. Real estate agents must disclose problems with properties, she

said.

Hekker thinks her experience will be repeated in other homes and

condominiums by the water. The structures aren't just in a flood plain, she

said, they're in ``a mold plain.''

She's also joined a national consumer group, called Policyholders of America

(www.policyholdersofamerica.org federal levels for laws setting standards

for mold issues.

Insurers Plead Their Case

The insurance industry is not taking the criticisms lying down. Company

representatives correctly point out that mold can result from many causes.

Yes, mold sometimes follows an event insurance will cover, like strong wind

or a rainstorm. But mold also can follow leakage caused by a construction

defect, such as a gap between the roof and the walls or the wall and the

floor, or just poor roof maintenance such as inattention to leaks.

Insurers argue they shouldn't be stuck with the financial responsibilities

for those claims.

Further, homeowners' insurance shouldn't be confused with health insurance,

said Hartwig, chief economist for the Insurance Information

Institute.

If a tree crashes through your window and breaks your leg, the homeowner's

insurance only covers the repairs to your home, not your limb, he said.

Likewise, he questioned whether these policies ought to be responsible for

the health effects of mold. Hartwig, like others in the insurance industry,

contends health claims are being magnified by the media and exaggerated by

attorneys who sue insurance carriers.

But homeowners with claims are seeking help. Some turn to public adjusters,

who prepare a claim and often deal with the insurance company's adjuster.

The goal is to secure a larger payout than the homeowner would have alone.

The adjuster is paid a percentage of the claim.

``Mold is absolutely a big deal, it's a hot topic,'' said R.

``Dick'' Tutwiler, owner of Tutwiler & Associates, a Tampa firm that deals

with homeowners, condominium associations and businesses.

Navigating The Cleanup Industry

Insurance isn't the only challenge for homeowners with mold problems.

A cleanup industry has emerged, but in Florida companies that test homes for

mold and cleanups aren't regulated.

Costs vary widely for in-home air testing, said Wolfgang Paltian, owner of

Air Quality Environmental Inc. in St. sburg. It's smart to ask

companies how they test and what they'll charge - often from $500 to $2,000

or more - and what exactly lab results will tell you, he said.

The scientifically accepted practice is for a tester to get a comparison of

the mold indoors and the mold outdoors before determining a house has a

problem.

``We look for a real big gap between inside and outside,'' said Paltian,

meaning the inside mold count is much higher.

Experts suggest consumers hire one company to test the air and, if needed,

another company to handle the cleanup. It can be considered a conflict of

interest if the same company that tests your home is the one that says you

need a $20,000 repair job, which is not unusual.

``People need to be aware of the company they are hiring,'' said

L'Hommedieu, owner of Fort Myers-based MicrOscope Inc. which specializes in

mold cleanups.

``We're not regulated by state license,'' he said. ``I wish we were. It

would separate the men from the boys; it's not carpet cleaning.''

Don Nehrig agreed.

``You want to make sure they have some training,'' said Nehrig, a senior

environmental manager for OHC Environmental Engineering Inc. in Tampa.

Consumers will see different kinds of certifications from various industry

groups.

L'Hommedieu was trained by the Indoor Air Quality Association as a certified

mold remediator. The trade group, based in Kensington, Md., requires

applicants to pass a three-hour test after completing about three days of

specialized training. There also are also requirements for some higher

education and/or experience in a related field.

Nehrig's designation as a certified indoor air quality professional came

from the Association of Energy Engineers, based in Atlanta. That group's

certification test lasts four hours. Candidates need a blend of a college

degree, experience and a previous lower-level certification from the group.

Candidates also can take preparatory seminars.

There is no one common course of study. That makes it important to check

references, Nehrig said.

In this field of so many complexities and differing opinions, there is one

agreement: Fix leaks quickly.

``If you've had a moisture intrusion, the faster you address it, the less

likely it is that mold will grow,'' said L'Hommedieu.

Reporter Jo-Ann ston can be reached at (813) 259-7804.

Go to TBO.com and click on the Health channel for special reports about

allergies and asthma contained in our A to Z health index.

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