The bill, H.R. 5040, also calls for tax credits for inspection and remediation of mold hazards, mandatory mold inspections for multi-unit residential property, and a research and public education program regarding mold.

The bill's sponsor, Rep. John Conyers Jr., D-Mich., said that toxic mold is transforming the American Dream of home ownership into a nightmare.

"The growth of toxic mold is becoming a problem of monumental proportions," Rep. Conyers said in a statement. "It is time to stop toxic mold from robbing Americans of their health and their homes."

Insurance groups, however, say that H.R. 5040 is premature, at best.

Scientists should develop definitive guidelines regarding the health effects of mold, mold exposure limits and mold remediation before H.R. 5040 advances, said Lynda Mounts, senior counsel for the Washington-based American Insurance Association.

"Mold has existed since biblical times, yet the multitude of issues addressed by Rep. Conyers' bill have developed only in recent years," she said. "Any purported federal legislative solution must therefore be approached with caution."

David Farmer, senior vice president of federal affairs for the Downers Grove, Ill.-based Alliance of American Insurers, said the legislation is premature because the scientific community has not arrived at a unified position on the toxicity of various kinds of mold.

"Unfortunately, the debate so far has generated more controversy than scientific conclusions," Mr. Farmer said.

He said he agrees with Rep. Conyers that more information is needed on this issue.