Insurance companies doing business in Texas have paid out just under $4 billion for mold claims in the past three years, representing a larger monetary loss for insurers than any weather catastrophe that has ever struck the state, according to a recent study by the Insurance Council of Texas.
"Companies price their insurance policies to handle hurricanes, tornados, and hailstorms that frequently strike Texas," said Mark Hanna, public relations manager for the council. "Companies were not prepared to deal with the high cost of mold claims and subsequent litigation that has jolted the industry, as well as consumers."
Mold claim costs in the state rose from $420 million in 2000 to just over $1 billion in 2001.
