Mold Claims Impact Insurance Industry, Remediation Business
WASHINGTON -- According to the National Association of Independent Insurers (NAII), mold claims cost homeowners insurers $1 billion in 2001, a loss considered to be a major factor in the first recorded fiscal-year loss in the history of the property/casualty insurance industry.
While the decline of the stock market played a more significant role in the industry's reported $7.9 billion deficit, the mold claim payouts present a problem for insurers and a possible boon for remediators and indoor air quality specialists.
"Health claims are being brought under property policies that were never intended to cover them," said Gordon Stewart, president of the Insurance Information Institute (III). "Fearing bad faith lawsuits, insurers often agree to expensive tests and remediation procedures."
Testifying before Congress in July, Stewart outlined the industry's position about mold hysteria as a major factor in the rising cost of homeowner's insurance.
"Companies face a growing number of court cases with accusations of severe and permanent health damage, without any peer-reviewed scientific research that establishes a link between mold and serious health consequences," Stewart said.
NAII reported that mold claim payouts for 2001 increased five times over their 2000 levels.
According to Cleaning and Maintenance Management Online, janitorial and sanitation industry experts expect this increase to continue in 2002 as public concern about mold and lack of clear scientific evidence to dispel or validate concerns persists. |
