Maryland Bans Mold Exclusions

Wednesday, March 19th, 2003 Property

Insurers in Maryland will not be able to completely exclude mold damage coverage from insurance policies, but will have the option of having recovery sublimits for mold-related losses, Maryland officials said. The announcement by the Maryland Insurance Administration drew support from the National Association of Independent Insurers. Dave Golden, director of commercial lines for the Des Plaines, Ill.-based trade group said the organization see rules of this type as a reasonable attempt to limit mold loss payments. "Hopefully this will keep Maryland from experiencing what other states such as Texas have gone through," said. "It will allow predictability, and whatever is covered will be reflected in the rates," said Mr. Golden.

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