July 21, 2006—Contrary to popular belief, climate is not a good gauge for mold risk, according to a ranking of states at risk for mold contamination on commercial and residential property. Areas with dry climates like Nevada and Arizona made it to the top ten while some Gulf States did not come close.
Because mold damage is now excluded or severely limited on standard property insurance, concerns about the financial impact of a mold outbreak in a home or business continue to rise.
In the relative hazard ranking model developed by American Risk Management Resources (ARMR) and now being used by GREENGUARD Environmental Institute (GEI), “dry states” (Oklahoma, Kansas) intermingle with predictably high-risk mold zones (Florida, South Carolina), but Texas beat them all.
The top ten states, in order, are Texas, Florida, Oklahoma, South Carolina, Nevada, Arizona, California, South Dakota, Tennessee and Kansas. The five states with the least risk of mold are Wisconsin, West Virginia, Alabama, Massachusetts and Minnesota.
The GEI/ARMR relative hazard ranking model was developed by comparing mold losses on insurance claims with premiums paid on property and liability coverage in each of the 50 states. The hazard ranking model does not yet reflect claims associated with 2005 hurricanes that struck the Southeastern US. Wisconsin has the lowest relative mold loss rate, which is one-50th the loss rate in Texas based on the relative frequency of insurance claims.
For more information, visit the ARMR Web site.
