Mold fears overblown, experts say

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http://www.chron.com/cs/CDA/story.hts/topstory/966184

July 12, 2001, 5:26AM

Mold fears overblown, experts say

By ERIC BERGER

Copyright 2001 Houston Chronicle Science Writer

Health and insurance officials blamed Houston's recent flooding and a

well-publicized Austin lawsuit for fueling media hype that they said has

overblown the health concerns about toxic mold.

The frenzy has spurred thousands of area homeowners to have their property

inspected for mold, especially toxic strains, which can cost $500 or more.

" The term `killer mold' was made up by the media, " said Jaye Stanley, a

program manager for the Texas Department of Health. " Why do they use it?

Because it's sensational. Would any of us pay attention to a program called

`Mold can make us sneeze?' "

Stanley and other officials spoke at a forum Wednesday for more than 200

insurance adjusters who have been besieged by claims to clean up mold in the

wake of flooding from Tropical Storm .

Nearly all insurers who write flood insurance policies are backed by the

U.S. government's Federal Insurance Administration. Those policies cover the

" reasonable costs " of removing all mold types from infested homes, said the

agency's director of claims, Shortley.

A disagreement between a consumer and adjuster about the reasonable cost to

repair a mold-infested home can open the door to expensive lawsuits.

Consumers and adjusters may also clash over testing for mold, which can be

done to determine whether mold is present or, after a contractor has

completed a job, the problem has been removed.

Shortley said insurers would not be reimbursed by the federal insurance

program for private mold inspections, which means most homeowners who have

had inspections done will likely have to foot the bill themselves.

Several area mold-testing firms, which conduct visual inspections, identify

strains of mold and test air for mold spores, reported such heavy demand

that customers are waiting weeks or even months for service.

" Why should people call for an inspector if they can't come out for a

month? " Shortley said. " They ought to get the mold removed right away. "

In addition to the flooding, a recent jury verdict has also raised awareness

of mold in the minds of insurers and the insured alike.

In June, a Central Texas family won a $32 million jury award against Farmers

Insurance Group because of a dispute over removing toxic mold from their

11,500-square-foot home near Dripping Springs. A judge is reviewing that

decision.

Conflicting scientific studies of the health hazards of toxic mold have not

lessened the debate.

Researchers agree that mold can lead to numerous, often annoying, health

problems, such as allergies or a worsening of asthma. The dispute comes when

the subject turns to whether molds can cause severe, life-threatening

reactions such as bleeding in the lungs, as some researchers have recently

claimed.

Concerned about a rising number of mold claims, the insurance industry has

petitioned the Texas Department of Insurance to exempt mold from homeowners'

insurance coverage.

Without such an exemption, insurers say, the cost could run into the

millions and raise rates by as much as 40 percent. That decision is pending.