Mold: Insurance Industry Response
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Property concerns

Looking through recent cases concerning mold, one might be tempted to think that it's really an issue of health and therefore casualty rather than property. The cleaning of a moldy carpet seems slight compared to an allegation that this mold adversely affected the well-being of loved ones. However, property damage due to mold can be a major issue, especially in cases of extreme mold abatement.

Extreme mold abatement
Is there any property coverage?
Present property forms may respond if there is a covered water damage claim and mold appears as a result of the water damage. The claim must be submitted in a timely manner and the insured must do everything possible to contain the water damage loss.

Every kind of property can be damaged by mold:
  • Structures
  • Contents
  • Landscaping
  • Valuable Papers
  • Computers
  • Automobiles

    What losses can be expected from mold-related property claims?
    Good question! The answer is that a whole range of losses can be expected.
  • Testing costs ($1000 to $2000 minimum)
  • Containment and remediation expenses ($5,000 minimum)
  • Additional living and extra expenses
  • Relocation costs
  • Repair
  • Replacement (structures AND contents)
  • Diminution of value claims
  • Demolition costs
  • Debris removal costs
  • Building ordinance
  • Claims handling costs
  • Legal expenses

    Who will suffer a property loss?
    The quick answer is that just about any property owner can suffer a loss due to mold damage. This includes owners or renters of:
  • Homes
  • Condominiums
  • Townhouses
  • Cooperatives
  • Apartments
  • Office buildings
  • Commercial buildings
  • Tenant improvements and betterments
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    Not only are policy forms, clauses, rules and court decisions constantly changing, but forms vary from company to company and state to state. This material is intended as a general guideline and might not apply to a specific situation. The authors, LunchTimeCE, Inc., CEfreedom, and Insurance Skills Center, and any organization for whom this course is administered will have neither liability nor responsibility to any person or entity with respect to any loss or damage alleged to be caused directly or indirectly as a result of information contained in this course.