Information About Coverage for Mold Losses

Bulletin 141 Information about Coverage for Mold Losses November 26, 2002 Countrywide, property and liability insurance losses from claims related to mold are increasing. The department has been asked by the insurance industry to approve limitation and exclusion endorsements for mold coverage. Based upon a review of this issue, the department has determined that failure to approve limitations on mold coverage would result in significant premium increases and/or a reduction in the number of insurers doing business in the Vermont market. After balancing the need of Vermonters to have a competitive marketplace that offers insurance coverage at reasonable prices, with the goal of making the broadest coverage available to Vermonters that is possible, the department has decided to approve certain mold limitations and exclusions. Such limitations will be permitted in the personal line and commercial line marketplaces. For specific information about endorsement language and coverage limitations and filing instructions, interested parties should refer to the “Rates and Forms” subsection of the Department's website. (Web version note: See Mold Limitation/Exclusion Filing Guidelines.) Elizabeth R. Costle, Commissioner