National Report

Sunday, February 9th, 2003 Legislation & Regulation Liability Litigation Property

An approved Insurance Services Office mold limitation for homeowners coverage has been adopted by 35 states. The limitation allows insurers to exclude coverage for loss caused by mold and wet or dry rot, unless the conditions result from a covered peril. A separate limit for mold damage resulting from a covered peril may be added by endorsement. The limitations, coupled with an appeals court’s reduction of damages in the Ballard case, could help stabilize the homeowners market, according to the National Association of Independent Insurers. “The ISO approach introduces a note of sanity on an issue that too frequently is surrounded by misconception and bad science,” said Dave Golden, director of commercial lines for the NAII.

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http://www.claimsmag.com/Issues/Feb03/national_report.asp

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