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Lead-Based Paint Hazards: Abatement Standards Are Needed to Ensure Availability of Insurance

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Report Type Reports and Testimonies
Report Date July 15, 1994
Report No. RCED-94-231
Subject
Summary:

Millions of property owners face significant financial risks because liability insurance for lead hazards is becoming increasingly difficult to obtain. A number of owners and their insurers have already made payments--some amounting to millions of dollars--to the families of lead-poisoned children. To avoid the growing number of claims, property owners can attempt to remove lead hazards--which can be costly--but no nationally accepted methods or standards for such abatement exist. Consequently, owners cannot be sure their abatement efforts will reduce their liability and insurance companies are reluctant to insure against unpredictable claims for damages resulting from lead hazards. Thus, until the Environmental Protection Agency establishes reasonable standards for the inspection and abatement of lead hazards in privately-owned property, little progress will be made toward providing insurance for property owners or abatement contractors.

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