Insurers Worry About Toxic Mold Claims

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http://abcnews.go.com/sections/wnt/DailyNews/toxicmold_010626.html

Hidden Menace

Insurers Worry About Toxic Mold Claims

By McKenzie

June 26 - More and more homeowners are filing insurance claims and lawsuits

over toxic mold, and insurance companies are worried the claims could

overwhelm them.

" The insurance companies thought the asbestos problem was enormous, and this

is going to make that look small, " said Jeff Greene, a public insurance

adjuster.

In Texas, several insurance companies have asked the state to allow them to

drop mold coverage from homeowners' policies. Today, several hundred

homeowners showed up at a public hearing on the issue held by the Texas

Department of Insurance.

Earlier this month, a Texas jury awarded $32 million to a woman for what

mold did to her 22-room mansion and the mental anguish she went through. The

insurer she sued, Farmers Insurance Group, was among the companies seeking

relief from the state.

Linked to Health Problems

Toxic mold is in millions of homes and offices and schools across the United

States. The term refers to various strains of mold that are blamed for an

ever-expanding list of ailments, ranging from sinus infections and

headaches, to chronic fatigue and even short-term memory loss.

" We know these molds can do these things, " said Jack Spengler, a professor

at the Harvard School of Public Health. " We know it from animal studies. We

know it from clinical studies and occupational settings. "

A 1999 Mayo Clinic study found that nearly 37 million Americans have chronic

sinus problems because of mold.

Mold usually grows in damp places: behind walls and under floors - wherever

there are wet materials it can feed on. In sitting water, some molds can

grow in just 24 hours.

Drastic Measures

Toxic mold has even forced people to desert their homes.

In Eugene, Ore., the O'Hara family's home became so infested with mold that

they asked the local fire department to burn it down. They figured that it

would be cheaper to rebuild from scratch than try to eradicate the

contamination.

" We've got a lot of fond memories of it being our home, " said Mark O'Hara.

" Now it's just basically a house that poisoned my family. "

Doctors had attributed the family's nosebleeds and headaches to mold in

their home.