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

The two spoke during a panel discussion of "Water Loss/Mold Claims--A Step-by-Step Approach," at the ACE*SCLA conference last week in Orlando, presented by The National Underwriter Company's Claims magazine, and the Society of Claim Law Associates.

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

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

Mr. Provencher said that workers who are brought in to do remediation work must be advised of the nature of the mold hazard they are dealing with, or it could lead to lawsuits against the building owner.

Care should also be taken to learn the background and history of any specialists brought to the scene, Mr. Provencher said, urging insurers to "know who your experts are." This is not an easy process, he noted, because "it's a new field and it's difficult to find out who the good ones are."

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

He said employing people well-versed in their field is particularly important because when litigation is involved, experts without true expertise "can fold on the [witness] stand."

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

Mr. Provencher stressed the importance of carefully documenting all activity with water damage claims. "Document what you tell people," he said, noting that when mold is observed, "the insured has an affirmative responsibility to prevent further damage." Once notification has been provided, "if a situation continues, it's not on your dime," he added.

Mr. Wudyka stressed the importance of treating clothing for mold and the savings that are possible through remediation. In a typical water claim, clothing represents 23 percent of the covered items in a home, he said.

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

On average, every dollar an insurer spends on clothing restoration saves $6.25, he said. Mr. Wudyka cited the difference between replacement costs and cleaning for a number of items--noting that a $75 Ralph Lauren polo shirt can be restored for $4.95.

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

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