Wednesday, June 27, 2001

Hundreds weigh in on mold

Tearful homeowners testify about illness, damage

Associated Press

Attorney Rod Bordelon with the Office of Public Insurance Counsel speaks Tuesday during an Austin public hearing of the Texas Department of Insurance on coverage for mold-related damage. Testimony of homeowners was also heard.

AUSTIN - Six weeks ago, Dawn Richardson moved into a new home with her husband and two daughters, ages 5 and 17 months.
   But shortly after they moved in, the family began getting sick. A leak in the air conditioner had caused water to seep between the walls and under the floors.
   Mold had developed in the home.
   "Not only were we getting sick, but my baby had regressed in her language,'' said Richardson, an Austin resident. "Now that we are out of the house, our health has steadily improved, but we still have outstanding questions with our baby's development and we are devastated emotionally and strapped financially.''
   Richardson was among dozens of homeowners who testified at a daylong Texas Department of Insurance public hearing on insurance coverage for mold-related damage.
   In recent years, Texas and other states have seen increasing complaints about mold damage to buildings and homes. Most Texas homeowner policies include coverage for mold damage if it is caused by a covered loss such as a roof or plumbing leak. But Farmers Insurance Co. has filed a proposal with the Insurance Department that would exclude all coverage of mold and fungi from standard homeowner policies.

Associated Press

Homeowner Melinda Ballard and her husband, Ron Allison (right), of Dripping Springs, sit after testifying at the hearing. They recently won a $32 million lawsuit for mold infestation in their home.

   Tuesday's hearing was to gather information, and no action was taken on the matter. Although the hearing was prompted by Farmers' request, it also was intended to gather general comments about how mold contamination affects people and whether mold coverage should be kept in the standard Texas policy.
   "We intend to study this carefully,'' said Jose Montemayor, Texas Insurance Commissioner. Montemayor also plans to hold public hearings in Corpus Christi and Houston, although no dates have been set.
   In the first six months of 2001, Farmers Insurance Group received more than 1,000 new mold claims in Texas, according to the company's prepared statement submitted to the insurance commission.
   The company also says Texas mold-damage claims will account for $128.5 million in additional costs to insurers, which ultimately will lead to higher premiums for all homeowners.

Associated Press

Jose Montemayor, Texas Insurance Commissioner, presided at the hearing. Montemayor also plans to hold public hearings in Corpus Christi and Houston, although no dates have been set.

   "To avoid these premium increases, Farmers has proposed endorsements that make it clear that mold damage is not covered,'' the statement said. "Our proposal is simple and sensible, and it gives consumers the choice. If they want mold coverage, they can have it. If they don't want it, they are not required to carry the burden for paying for it.''
   Anti-insurance industry
   But the sentiment at Tuesday's hearing in the 1,000-seat LBJ Library Auditorium was clearly anti-insurance industry. More than 500 people attended the hearing.
   Montemayor, who presided over the hearing, had to warn the audience several times when people clapped and cheered at negative comments directed at the industry.
   During their testimony, some homeowners fought back tears as they described moving from their home of 30 years to a hotel or rent house after mold caused illness in their family.
   Attributing problems

How to fight mold Take care of plumbing leaks immediately. Ensure that all plumbing fixtures, washers and dishwasher drains are connected to wastewater systems. Pay attention to repeated condensation on windows. Watch for water stains on ceilings and walls. Maintain, repair and replace roofing and flashing; perform yearly roof inspections. Respond immediately to flooding and overflows. Source: Dick Poremba, a principal with HNP, an engineering and environmental consulting firm. Click here for more mold-fighting tips

   Even some elected officials testified about mold problems in their homes. Hays County Judge Jim Powers said mold forced him, his wife and their three kids out of their Dripping Springs home. They now live out of a hotel room.
   "It's devastating,'' he said.
   Many homeowners who testified attributed their problems to faulty construction, air conditioning and plumbing leaks, careless building practices and defective building materials. Many also described an insurance industry that is slow to resolve claims and homebuilders that use shoddy materials.
   "This is not the time to . . . run away from this problem or run away from these homeowners,'' said John Cobarruvias, a Houston resident and board member of Homeowners for Better Building. "The homeowners are mentally, physically and financially drained, and this is wrong.''

To comment: Those who want to comment but cannot attend a public hearing can provide information to the Texas Department of Insurance by: E-mail: CommercialPC@tdi.state.tx.us Fax: 512-463-6607 Mail: Texas Department of Insurance, Homeowners Division (MC 104-1F), P.O. Box 149104, Austin, Texas 78714-9104.

   Officials with the U.S. Environmental Protection Agency and Texas Department of Health said mold is one of the top indoor air quality problems. But there are no state or federal standards on how much mold is safe or dangerous, said Mike Miller, the EPA's regional indoor air coordinator in Dallas.
   "'The key to controlling mold is to control moisture,'' Miller said, adding that if there is a water problem in a house, it's crucial that homeowners get it dried within 48 hours.
  
  
  

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Ty Meighan is chief of the Scripps Howard Austin Bureau. You can reach him by phone at (512) 334-6640 or by email at meighant@scripps.com.

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