Toxic Mold: Insurance and Legal Issues (CRS Report for Congress)
| Release Date |
Aug. 6, 2002 |
| Report Number |
RS21280 |
| Report Type |
Report |
| Authors |
Christopher Alan Jennings, American Law Division |
| Source Agency |
Congressional Research Service |
Summary:
Allegations of bodily injuries and property damage resulting from toxic mold in home and work
environments have triggered litigation across the nation, and, as a result, have prompted insurers and
governments to grapple with coverage of risks to property and health resulting from exposure to
mold. To minimize their financial exposure to these losses, insurance companies have variously
been excluding mold risks from coverage on their standard policy forms, raising premiums,
increasing deductibles, and capping coverage. The perils associated with toxic mold coupled with
the insurance industry's reduction in coverage have attracted the attention of state and federal
legislators. Many states now regulate coverage against mold-related damage. In Congress,
H.R. 5040 , alternatively entitled the "United States Toxic Mold Safety and Protection
Act of 2002" and the "Melina Bill," would, among other things, establish a federal insurance
program to cover risks related to toxic mold. Emphasizing insurance issues, this report provides a
brief summary of perceived perils, legal issues, and legislation associated with toxic mold. As
circumstances warrant, this report will be updated.
