Alabama OKs ISO Mold Endorsement
By E.E. Mazier
NU Online News Service, Feb 26, 2:15 p.m. EST?The Alabama Insurance Department has given the green light to insurers' use of a policy amendment for mold damage proposed by the Insurance Services Office.
Christopher Guidette, spokesperson for the Jersey City, N.J.-based ISO, said that the endorsement language is designed to provide a level of coverage for homeowners who otherwise would not be covered for mold claims unless they resulted from an insured peril, such as a burst water pipe. He indicated the effective date for use of the optional endorsement is April 1.
In terms of property coverage, Alabama homeowners will have a choice of three limits –$10,000, $25,000 or $50,000 –"on claims payouts within a policy year," Mr. Guidette said.
This would cover "damage related to fungi, wet or dry rot or bacterial damage," he explained, and would help defray the costs of removing the mold from the home.
The limits for liability are $50,000 and $100,000, Mr. Guidette continued. Liability coverage would apply if, for example, a guest developed an illness due to exposure to mold in the host's home.
Mr. Guidette added that ISO filed the endorsement for use by its members in all 50 states. He indicated that 20 other states to-date have approved use of the mold endorsement, including Arizona, Colorado, Indiana, Iowa, Kentucky, Missouri, Montana, Nevada, Ohio, Pennsylvania, Tennessee and Utah.
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