Will toxic mold threaten commercial windstorm insurance premiums?

Yes, as a matter of fact, they have already done so in Texas. While state consumer representatives call for a cut, a premium increase for hail and windstorm insurance on businesses is what a Texas insurance trade group is arguing for along the Gulf Coast.

The Texas Department of Insurance has been called upon by The Texas Windstorm Insurance Association (TWIA) to approve a 13.6 percent premium increase for windstorm and hail policies on:

• Coverage for commercial buildings

• Citing the need

• Protect against the possibility of toxic mold claims in the future

Data should lead to state to cut rates by 15 percent - the maximum allowed by the law, according to The Office of Public Insurance Counsel (OPIC), a Texas state agency that represents the interests of insurance consumers in insurance matters.

Jerry Johns, the president of the Southwest Insurance Information Service, the official spokes group for the Texas Windstorm Insurance Association claims, "Anytime you have a windstorm in coastal areas it's always accompanied by wind-driven rain, especially in hurricanes and tropical storms. And water damage makes a breeding ground for toxic mold.'

Toxic mold losses will become much more significant for the TWIA, according to Johns. Because of the fact that the water damages "make a breeding ground for toxic mold', the insurance rates are rising. However, if there were not threats made by the toxic mold, the insurance rates would've stayed at a constant rate.

"There's not any evidence to support their claims that mold will be a problem. You can't rely on anectodal evidence and people saying 'we think that this will be a problem' to raise insurance rates,' claims Rod Bordelon, the public insurance counsel for Texas. He claims that if the TWIA has any data that would show toxic mold will be a problem, he has not seen it yet.

You see, there are both sides to this debate. However, one side was already in favor of the authority identifying the premiums - the law. Nevertheless, both insurance professionals make excellent arguments and both prove excellent points.

Bordelon then claims, "The fact of the matter is that in the last 30 years or so, we have not seen a tremendous number of costly storms in Texas along the Gulf Coast. Our analysis shows that the currents rates are excessive.'