Mold Dangers Noted in Michigan

Speaking recently before the Michigan Insurance Federation annual meeting Laura Kotelman, counsel for the National Association of Independent Insurers (NAII), told the group that a growing number of mold claims are being seen not only in Texas but also around the country, including Michigan.

“Factors such as modern building materials, heightened public awareness due to extensive media coverage, ambitious trail attorneys and emergence of mold remediation specialists’ have contributed to the increasing number of mold claims. However, when you strip away all the hype, most mold can be prevented or controlled with routine maintenance and proper remediation,” said Kotelman.

While mold claims in Texas captured national attention, homes, schools and other buildings in Michigan have also experienced problems. Kotelman urged the industry to emphasize education and maintenance to help manage the issue.

“Prevention must be our primary message to consumers. We need to help consumers understand that they can avoid mold problems by checking for signs of water leakage and responding immediately. This is a critical message that is not often heard,” said Kotelman.

In addition, insurers are addressing mold issues by clarifying coverage questions and providing additional claims handling training. To control their exposure to mold damage claims, many companies have considered exclusions and various forms of endorsements. Insurers are also strengthening the knowledge base of claims adjusters so that they are better able to work with remediators.

“Ultimately, the mold issue is manageable. First we must reduce the hysteria that surrounds the issue so that everyone involved can make decisions based on the facts rather than emotion. Secondly we need to continue to seek more scientific information about testing, remediation and exposure standards. And finally we should be emphasizing education and prevention to ensure that mold does not become a larger problem than necessary,” said Kotelman.