In its settlement with Florida Farm Bureau Insurance, the Florida
Department of Insurance capped the carrier's responsibility for mold
claims at $10,000 per incident a year and $20,000 total.
Starting March 1, Florida Farm Bureau's 100,000 policy holders will
be able buy extra mold coverage. For $60, a homeowner can boost coverage
to $25,000 per incident a year and $50,000 total. For $90, the limit
climbs to $50,000 in a year but the total cap remains at $50,000.
Toxic mold typically results from water damage and can sicken people
who come in contact with it.
Spurred by a flood of mold claims in Texas, Florida Farm Bureau and
237 other homeowners insurers asked state regulators to limit their mold
risk.
While the state put those requests on hold, Florida Farm Bureau and
State Farm asked for immediate decisions, leading the Department of
Insurance to reject both companies' mold filings. Both appealed to the
state Division of Administrative Hearings.
Florida Farm Bureau and the state negotiated a settlement before a
judge ruled on the matter. An administrative judge is scheduled to hear
State Farm's appeal Jan. 13.
Department of Insurance spokeswoman Tami Torres called the deal
"very reasonable," but neither she nor officials at Florida Farm Bureau or
State Farm would say whether these guidelines will serve as a model for
other carriers.
While Florida Farm Bureau had asked for a $10,000 limit on mold
claims, State Farm has asked for a complete pass on mold claims, although
it also has offered to sell additional mold coverage.
Florida Farm Bureau's customers are mainly in northern and central
Florida, although an official said the insurer has "several thousand"
policies in Palm Beach County and the Treasure Coast.
