The Business Journal of Phoenix - 10:49 AM MST Monday

Despite the dry climate here, Arizona is one of the 10 worst states for mold contamination on commercial and residential property as measured by losses on insurance claims in comparison to premiums paid, the Greenguard Environmental Institute said Monday.

According to statistics developed by Greenguard and American Risk Management Resources, Texas is the worst state in the country for losses associated with mold. Florida and Oklahoma were second and third, followed by South Carolina, Nevada and Arizona.

The states with the smallest payouts for mold were Wisconsin, West Virginia, Alabama, Massachusetts and Minnesota.

According to Greenguard officials, the study does not reflect claims associated with the 2005 hurricanes that struck the Southeastern U.S.

The study shows, Greenguard said, that the mold loss rate in Wisconsin is one-50th that of Texas. The authors of the report said that because insurance coverage for mold damage is now excluded or severely limited on standard property insurance, the economic impact of a mold outbreak in a home or office is on the rise.

According to Greenguard Chief Executive Carl Smith, many buildings and houses in dry climates develop mold because moisture is nurtured within walls and windows that are tightly sealed because of the hot climate.

"Think of a glass of ice water sitting on your porch in 95 degree heat," said Smith. "Condensation quickly forms on the outside of the glass, but unlike your drink, condensation in a home or business has nowhere to run off, so it builds up in the cavities of the structure, creating an ideal climate for mold contamination."
 
"In the age of universal mold exclusions on insurance policies, everyone involved in real estate needs to diligently manage the mold risk," said David J. Dybdahl, head of American Risk Management Resources.

Greenguard Environmental Institute is a nonprofit group pursuing a goal it describes as the improvement of "public health and quality of life through programs that improve indoor air." The group said it recently announced a mold-risk reduction program that it hopes will become an American National Standards Institute (ANSI) standard.
 
 
 

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