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Guidelines For Mould Insurance Coverage
Approved in Georgia
Insurance Journal: The Property Casualty
Magazine,
June 2, 2003
The Georgia Department of Insurance
released comprehensive mould endorsement filing guidelines, providing
insurers with guidance on the minimum level of mould coverage required in
homeowners and commercial lines policies.
 According
to the American Insurance Association (AIA), which was part of an industry
group that negotiated with state regulators, the guidelines don't allow for
as much flexibility as carriers had wanted but they define clearly the scope
of mould coverage the state will require.
For homeowners policies, the new Georgia guidelines are comparable to
pending ISO filings. The guidelines provide that mould damage ensuing from a
covered peril is covered up to the policy limits. They also require a
minimum level of remediation coverage (for example, for air sampling and
testing expenses) when mould results from a sudden and accidental water loss,
plus the option for consumers to buy additional remediation coverage.
For commercial property and liability coverage, insurers wanted a greater
range of coverage options than the Georgia guidelines allow, in light of the
explosion in mould litigation, and the exorbitant costs involved in defending
these cases.
"AIA appreciates the willingness of the Department to include insurers in
this process," Raymond G. Farmer, AIA assistant vice president, southeast
region. "The surge in mould claims over the past two years has required
insurers and regulators alike to work together to establish rational
standards for mould coverage that provide consumers and businesses sufficient
coverage options while also preserving a viable insurance market." |
