Fitch: Insurers Mold Problem Peaking
Tuesday, October 15th, 2002 PropertyThe number of mold-related damage claims insurers are receiving has probably already peaked or is close to doing so, according to a New York-based rating firm. Fitch Ratings, which made the finding in a new study, said it believes insurers will largely be able to control loss exposure to mold damage through coverage constraints, exclusions and pricing adjustments. Fitch noted that although mold is not a new issue for the property-casualty industry, mold contamination claims have become significant only during the past few years. Awareness and fear of the possible health hazards associated with mold, Fitch found, have become much more commonplace due to considerable publicity and sizable jury awards. Brett Lawless, director, Fitch Ratings, commented that mold remediation costs have been additionally impacted by higher remediation standards.
