Despite having received approval from the California senate, a bill to mandate the coverage of mold and create new disclosure requirements has been dropped by its sponsor, Sen. Deborah Ortiz (D-Sacramento).
"We were surprised Senator Ortiz decided to put her bill on hold for the rest of the year," said Mark Sektnan, assistant vice president, western region, for the American Insurance Association. "Meanwhile, the industry will continue to struggle with the skyrocketing costs of mold claims and litigation. This issue is not going away."
The proposed legislation set standards for acceptable levels indoors and required home sellers to disclose mold problems. The AIA had expressed concerns that passage of the bill could cause an availability crisis in the homeowners insurance market.
"This bill had the potential to jeopardize the entire insurance marketplace in California," said Sektnan.
