Thank you for sharing!

Your article was successfully shared with the contacts you provided.

In the late 1990s and early 2000s, the insurance industry saw a very sharp increase in the number of claims being submitted for mold damage associated with covered water damage claims. At that time, most property policies had a standard mold exclusion that had been present for many years. The standard Homeowners 3 form from the Insurance Services Office provided all-risk or open-perils coverage for direct physical loss to the dwelling, but contained a standard mold exclusion that was generally interpreted as excluding only damage that was caused by the peril of naturally occurring mold. It did not exclude the mold growth and damage that occurred as a result of a covered water damage claim.

In the early 2000s, the public became more aware of a potential health hazard resulting from prolonged exposure to mold. As a result, the insurance industry faced tens of thousands of claims nationwide for mold damage associated with covered water damage claims, with hundreds of millions of dollars in claims on the line along with a lengthy and expensive litigation process.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.


  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?


Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.