Wednesday, July 24th, 2002 — The Texas Department of Insurance has adopted Insurance Services Organization form language for homeowners insurance that would restrict insurers‘ coverage when it comes to mold claims.
Under the ISO form, said Jose Montemayor, Texas insurance commissioner, in a written statement, insurers would be allowed to limit mold coverage, similar to what the department said was adopted last November for Texas Standard Policies.
In return for use of the form, insurers must show they are reducing premium rates to reflect the changes, the department said.
Homeowners should see premium reduction rates ranging between 8 percent and 39 percent for the basic HO-B policy, it is estimated.
Homeowners can purchase additional coverage for mold related risks. The department said it has approved six residential property policy forms and 93 endorsements.