Some Insurers Dropping New Home Policies, Others Looking For Mold
Specialists
While some insurers are fighting to drop water damage policies,
others are making sure the mold abatement firms they use are trained
and qualified.
Last month, Fireman's Fund Insurance Company and Liberty Mutual
Insurance Co. both requested lists of Certified Mold Remediators (CMR)
from the Indoor Air Quality Association (IAQA). According to IAQA
officials, insurance company representatives intend to distribute the
list of mold abatement professionals to their claims agents
nationwide.
"The insurance industry people told us they only want the best
- people who are trained and tested in mold remediation. IAQA's
Certified Mold Remediator program fits their qualifications,"
said Glenn Fellman, IAQA executive director.
A multidisciplinary IAQA committee that included professionals in
engineering, microbiology, industrial hygiene, HVAC mechanics,
cleaning, and restoration created the CMR program. To obtain
certification, a candidate must score at least 70 percent on a
125-question written exam. Candidates must also possess five years
experience in remediation or a related indoor environmental profession
to be certified.
Earlier this year IAQA approved two course providers to implement
the association's mold remediation training courses. Persons who take
the course and meet experience qualifications have the option of
taking an IAQA-administered exam to become a CMR. Already more than
300 people have taken part in the program.
"We are testing about 100 people a month and expect to double
or triple that number next year as we continue to add course
providers," said Fellman.
Course providers must pass criteria set by IAQA's Education
Committee and have their classes and manuals reviewed by association
representatives. A Florida-based IAQA trainer is expected to come
online this month, and other training providers are under
consideration.
IAQA isn't the only association training and certifying mold
abatement experts. The American Indoor Air Quality Council (AmIAQ) has
certified about 200 Certified Mold Remediation Supervisors (CMRS) in
the last year. Like IAQA, AmIAQ's training is conducted by
association-approved training providers. AmIAQ currently has three
firms approved to provide training.
Two associations from the restoration field - the Association of
Specialists in Cleaning and Restoration (ASCR International), and the
Institute of Inspection, Cleaning and Restoration Certification
(IICRC) - are also considering training and certification in mold
remediation as well. IICRC's program will likely include certification
for sewage disaster clean-up.
Insurers Ending New Home Policies
While mold certification courses are selling out in our industry,
some insurers have halted the sale of new homeowners policies in Texas
and elsewhere because of potential losses from water damage and mold
claims.
Farmers Insurance Group, which recently had a $32 million verdict
against the company in a Texas mold case, and Progressive Insurance
Co. recently stated in news releases that they were not selling any
new homeowner policies until they developed a strategy to assess and
define their liability.
Allstate was also rumored to be following the lead of Farmers and
Progressive. All three insurers have asked the Texas Department of
Insurance commissioner to allow them to exclude mold coverage on
insurance policies, even in a water damage claim.
Most policies in Texas now cover mold damage if it results from a water leak,
such as a broken pipe.
State Insurance Commissioner Jose Montemayor, who has been holding
public hearings on the issue around the state, has asked the five
largest insurers to report to him their total claims related to mold
damage.
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