State Farm policyholders who want to protect themselves from the financial hit of a toxic mold infestation might have to pay $250 to $625 a year for an extra policy.

State Farm, Florida's largest insurer, last month won permission from regulators to not pay a penny for mold damage as part of its standard homeowners' policies. The catch was it must agree to sell separate mold endorsements to homeowners.

On Tuesday, the carrier told state regulators how much it plans to charge for those policies: $250 a year for $15,000 in coverage; $350 for $25,000; $450 for $50,000; and $625 for coverage up to the policy's limit.

Renters would pay $90 to $150 a year for the same coverage levels, State Farm spokesman Tom Hagerty said. Policyholders would pay the same deductible for mold coverage as on their homeowners policies.

The Florida Office of Insurance Regulation must approve the proposed rates before they can take effect. The prices were based on State Farm's experience with mold claims in Florida and in other states, Hagerty said.

Like many insurers, State Farm fears a coming crush of mold claims and hopes to avert a financial crisis. State Farm's Florida mold claims jumped from 35 in 2000 to 950 last year, and mold claims have wreaked havoc on Texas' insurance market.

Other major Florida insurers, including Allstate, Nationwide Insurance, Florida Farm Bureau Insurance and First Floridian, don't exclude mold entirely but limit mold claims to $10,000.

The carriers sell mold riders that cover up to $50,000 in damage. Florida Farm Bureau sells the extra coverage for $60 to $90, while Allstate has proposed charging $180 to $250.

State Farm covers 921,000 homes in Florida.

For more information, contact:

Alan L. Wozniak, CIAQP

(800) 422-7873 ext. 802

info@pureaircontrols.com