PCI Opposes Conn. Mold Bill

March 8, 2004

The Property Casualty Insurers Association of America is opposed to a Connecticut Senate bill that would prohibit insurers from excluding mold damage from their coverages.
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The bill, S.B. 417, “An Act Concerning Insurance Coverage for Damage,” would prohibit insurers from excluding or limiting mold coverage from commercial or personal property coverage, except that the policy may include a minimum aggregate limit of $50,000 for loss from mold or remediation. The PCI said it would “make residential property insurance coverage less available and more expensive in the state.”

Gerald L. Zimmerman, PCI assistant vice president and regional manager, noted: ” With the notable exception of New York, more than 40 state insurance departments, including Connecticut’s, have approved the ISO (Insurance Services Organization) mold exclusions for homeowners and property policies. This bill would run counter to the ISO model’s intent and seriously compromise homeowners’ coverage in Connecticut.”

Zimmerman stressed that “all mold growth arises from moisture, and its prevention and removal comes down to a basic home maintenance issue. As such, insurers are well within their rights to exclude it from policy coverage.”

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