Don't judge a state's risk for mold by its climate, says American Risk Management Resources (ARMR) in its recent ranking of states at risk for mold contamination. Mold contamination on commercial and residential property is currently a large concern for the property-casualty industry — especially since it is now excluded or limited on standard property insurance.
The ARMR study, now being used by Greenguard Environmental Institute (GEI), indicates that climate is not a sufficient gauge for mold risk. Areas with dry climates like Nevada and Arizona made it to the top 10 states at risk for mold while some Gulf States did not.
The model was developed by comparing mold losses on insurance claims with premiums paid on property and liability coverage in each of the 50 states. The hazard ranking model does not yet reflect claims associated with 2005 hurricanes that struck the Southeastern U.S. Wisconsin has the lowest relative mold loss rate, which is one-fiftieth of the loss rate in Texas based on the relative frequency of insurance claims, according to the study.
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