Mold Claims Advice: Don't Dawdle

By Daniel Hays

NU Online News Service, Sept. 18, 4:22 p.m.EST?Claims handlers can avoid mold-infestation problemsthat escalate damage claims by addressing them as speedily aspossible, according to two experts who shared their wisdom with agroup of industry professionals at the ACE?SCLA industryconference.

Take action to "lock down the scope of damage," counseled JerryProvencher, president of Property Loss Consulting, Inc. inReisterstown, Md.

Wayne Wudyka, president and chief executive officer ofRestoration Dry Cleaning Network in Ann Arbor, Mich., advised that,"response must be immediate."

The two spoke during a panel discussion of "Water Loss/MoldClaims--A Step-by-Step Approach," at the ACE*SCLA conference lastweek in Orlando, presented by The National Underwriter Company'sClaims magazine, and the Society of Claim LawAssociates.

Mr. Provencher said that with water loss claims, it was key to"lock down the history of the building with a good building siteinvestigation right away. Miss that opportunity and you never getit back."

He also advised his audience to "lock down a scope of damage,"which Mr. Provencher said can be difficult and expensive when moldis involved. This should be done with a thorough pretesting, hesaid.

Mr. Provencher said that workers who are brought in to doremediation work must be advised of the nature of the mold hazardthey are dealing with, or it could lead to lawsuits against thebuilding owner.

Care should also be taken to learn the background and history ofany specialists brought to the scene, Mr. Provencher said, urginginsurers to "know who your experts are." This is not an easyprocess, he noted, because "it's a new field and it's difficult tofind out who the good ones are."

Mr. Provencher said that setting the policy conditions andpresampling of air quality by a qualified hygienist were important.Testing should also be done after the repair and restoration hasbeen completed, but not by the remediation firm, he counseled.

He said employing people well-versed in their field isparticularly important because when litigation is involved, expertswithout true expertise "can fold on the [witness] stand."

In answer to a question, Mr. Provencher said that not all waterclaims should require the use of expensive experts, and that damagedepends on how long the building materials involved have been wet.When there is treatment within 48 hours, there is small chance ofseeing mold, he said.

Mr. Provencher stressed the importance of carefully documentingall activity with water damage claims. "Document what you tellpeople," he said, noting that when mold is observed, "the insuredhas an affirmative responsibility to prevent further damage." Oncenotification has been provided, "if a situation continues, it's noton your dime," he added.

Mr. Wudyka stressed the importance of treating clothing for moldand the savings that are possible through remediation. In a typicalwater claim, clothing represents 23 percent of the covered items ina home, he said.

Mold damage to textiles, he said, are an often-underestimatedexpense. Mr. Wudyka said that in most cases homeowners prefer tohave their original items back.

On average, every dollar an insurer spends on clothingrestoration saves $6.25, he said. Mr. Wudyka cited the differencebetween replacement costs and cleaning for a number ofitems--noting that a $75 Ralph Lauren polo shirt can be restoredfor $4.95.

The best results are obtained if work starts within 72 hours, hesaid, before the mold growth begins feeding on the fabric.

Mr. Wudyka also said that treatment personnel should be inprotective gear "to avoid secondary liability from employees on thescene." He noted that his trained employees work with respirators,with which a typical dry cleaner is not equipped.