According to the Insurance Journal, Texas insurance companies have paid out approximately $4 billion for mold claims in the past three years. The Journal reported that the Insurance Council of Texas, an insurance trade association, stated that mold claims have represented a bigger monetary loss for insurers than any weather catastrophe that has ever hit the state.
“Companies price their insurance policies to handle hurricanes, tornados, and hailstorms that frequently strike Texas,” said Mark Hanna, public relations manager for the Insurance Council of Texas in the Journal story. “Companies were not prepared to deal with the high cost of mold claims and subsequent litigation that has jolted the industry as well as consumers.”