Below is the link to a current article in the San Jose Mercury regarding State Farm Insurance refusing to write any more home owner’s policies in California. What I found interesting in the article are the amounts stated that have been paid out in claims for mold in houses. If these figures are from home-owner’s insurance, I wonder how much has also been paid out by contractors and their insurers?
http://www.bayarea.com/mld/bayarea/news/breaking_news/3122037.htm
Replies
It's gonna get worse before it gets better.
I live in Texas, and almost all of the insurance companies did the same thing. Now, if you want mold coverage, it costs a LOT of money.
According to the Insurance Commissioner's office in Texas, the number of claims per thousand policies written went from 1.6 to 10.8 with the average claim being in the $18,000 range. That is 4.7 times the average homeonwer claim, and 5.6 times the average water damage (non mold) claim. In other words, they are getting hit hard and fast, and losing money. They are making changes, and those changes are basically less coverage for more cost to homeowners. We get less coverage for more money.
My rate went up about 33%, but I know LOTS of folks whose rates more than doubled since Jan 1, 2002.
Gonna get worse I'm afraid.
James DuHamel
J & M Home Maintenance Service
"Southeast Texas"