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MOLD
STATUS
No activity in
this Congress.
ANALYSIS
The presence of mold in residential and commercial buildings
has spawned a wave of litigation claims against an array of
different businesses. Since asbestos cases were so profitable
for the trial lawyers, it seems they are determined to make
mold the next big payday.
Like asbestos, mold presents an opportunity for trial lawyers
to manipulate the civil justice system. Mold cases involve
allegations of bodily injury, wrongful death, and property
damage. They also involve multiple plaintiffs, defendants,
and third-party defendants in class action lawsuits alleging
various causes of action. Solutions are extremely expensive
to undertake, with investigation and cleanup costs that can
range into hundreds of thousands of dollars. The litigation
also leads to substantial expenses such as expert witness and
legal fees.
The litigation potential
is only one aspect of the mold issue. Mold related claims
have increased nationwide and have contributed to rising
insurance rates.
Mold
Facts
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There are more than 100,000
known species of mold. At least 1,000 species of mold are
common in the United States.
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Molds produce tiny spores to
reproduce. Mold spores waft through the indoor and outdoor
air continually. When mold spores land on a damp spot
indoors, they may begin growing and digesting whatever they
are growing on in order to survive. There are molds that
can grow on wood, paper, carpet, and foods. When excessive
moisture or water accumulates indoors, mold growth will
often occur, particularly if the moisture problem remains
undiscovered or unaddressed. There is no practical way to
eliminate all mold and mold spores in the indoor
environment; the way to control indoor mold growth is to
control moisture.
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When moldy material becomes
damaged or disturbed, spores (reproductive bodies similar to
seeds) can be released into the air. Exposure can occur if
people inhale the spores, directly handle moldy materials,
or accidentally ingest it. Also, mold can sometimes produce
chemicals called mycotoxins. Mycotoxins may cause illness
in people who are sensitive to them or if they are exposed
to large amounts in the air. Large exposures are typically
associated with certain occupations (e.g., agricultural
work).
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The cost of a single mold
claim ranges from $10,000 to $100,000 for an investigation,
additional living expenses, and remediation, if necessary.
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No scientific studies have
been performed to date that establish a direct relationship
between mold contamination and health impacts. As a result,
no doctor or health official can establish what levels of
mold are safe or unsafe in a home, school, or office
building.
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Stachybotrys chartarum (also
known as Stachybotrys atra) is a type of mold that has been
associated with health effects in people. It is a
greenish-black mold that can grow on materials with a high
cellulose content, such as drywall sheetrock, dropped
ceiling tiles, and wood, that become chronically moist or
water-damaged, due to excessive humidity, water leaks,
condensation, or flooding. Many molds are black in
appearance but are not Stachybotrys. For example, the black
mold commonly found between bathroom tiles is not
Stachybotrys. Stachybotrys can be positively identified only
by specially trained professionals (e.g., mycologists)
through a microscopic exam.
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The key to mold control is
moisture control. It is important to dry water damaged
areas and items within 24-48 hours to prevent mold growth.
If mold is a problem in your home, clean up the mold and get
rid of the excess water or moisture. Fix leaky plumbing or
other sources of water. Wash mold off hard surfaces with
detergent and water, and dry completely. Absorbent
materials (such as ceiling tiles and carpet) that become
moldy may have to be replaced.
-
Molds can be found almost
anywhere; they can grow on virtually any substance,
providing moisture is present. There are molds that can
grow on wood, paper, carpet, and foods.
-
Spore-spreading fungus is
creating a big rise in property damage claims to insurance
companies’ nationwide, sending insurance rates for
homeowners and landlords through the roof. Because of a
recent large mold-related lawsuit and a strong residential
real estate market, which resulted in fast but not always
high-quality home construction, claims are piling up.
Premiums across the country have risen from six percent to
15 percent.
LEGISLATION
In the past, Representative John Conyers (D-MI) has introduced
legislation entitled the United
States Toxic Mold Safety and Protection Act, otherwise known
as the “Molina Bill.” The Congressman was inspired to
introduce legislation because one of his staffers became ill
from a mold-infested house.
Representative Conyers'
bill would direct the Environmental Protection Agency (EPA)
and Centers for Disease Control (CDC) to examine the effects
of different molds on human health and develop accurate
scientific information on the hazards presented by indoor
mold. The legislation also directs the EPA and the Department
of Housing and Urban Development (HUD) to establish guidelines
that identify conditions that facilitate indoor mold growth
and measures that can be implemented to prevent such growth.
The guidelines would address mold inspection, testing, and
remediation. The EPA and HUD would have to establish
guidelines for certifying mold inspectors and remediators to
help identify hazards associated with inspection and
remediation and to identify the steps that should be taken to
minimize the risk to human health.
The bill sought to have mold inspections for multi-unit
residential property and mold inspections for all property
that is purchased or leased using funds that are guaranteed by
the federal government. The bill also required mold
inspections in public housing.
Finally, the bill
authorized tax credits for inspection and/or remediation of
mold hazards and creates a National Toxic Mold Insurance
Program administered by the Federal Emergency Management
Agency (FEMA) to protect homeowners from catastrophic losses.
The bill would enable states to provide Medicaid coverage to
mold victims who are unable to secure adequate health care.
OUTLOOK
Consumers are finding it difficult to obtain insurance for
mold. Since claims and rates have dramatically increased,
many insurance companies are dropping coverage. As if losing
insurance coverage was not enough to worry about, small
business owners are also concerned with the potential for
liability. If mold is discovered in a house or other building
everyone, including the homebuilder, the building material
dealers, the installer and companies that maintain air
conditioning, electrical wires and plumbing, can be sued.
The SBLC has opposed the "United
States Toxic Mold Safety and Protection Act," and will
continue to oppose any similar proposals. More research on
mold is needed before Congress creates any legal standards and
thresholds. The bill has yet to be reintroduced in this
Congress.
/I99101208
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