ACIC: Mold Is Uninsurable

Insurance coverage for exposure to mold in the environment is impossible to provide because losses cannot be quantified or defined with the current medical, scientific, biological and environmental information available, the Association of California Insurance Companies (ACIC) explained during a Feb. 5 California Assembly Insurance Committee informational hearing. "Media hype has many homeowners believing mold is overtaking their homes and attacking their families," Janine Gibford, ACIC government affairs advocate, testified. "Because of this hysteria, the cost to investigate and settle such claims is escalating." Virtually all mold losses stem from water damage claims. The frequency and average cost per water damage claim have risen sharply in the last five years.