Just three years ago, the insurance industry didn't acknowledge there was a problem. That attitude has changed dramatically, says John Marlow, an AIA spokesman based in Austin. Although most homeowner policies now specifically exclude mold from coverage, mold-related lawsuits are forcing the industry to pay for the problem. While it is still too early to say how much these claims cost the industry, Marlow says the escalating numbers are bad news for everyone, consumers especially. It is a very serious concern.
Litigation is a cost of doing business.
As those costs go up, premiums are going to have to go up. Marlow, like other industry representatives, declined to provide any specific examples of how insurance carriers are attempting to address the issue. It is a subject that, given the litigation, they would rather not discuss. Besides money, the fuel that's really feeding the litigation fire is publicity. As the public awareness about mold grows, so do the number of mold-related lawsuits.