Coverage Clues: When and To What Degree – Almost two years ago to the day, I wrote a Claims Magazine column about the property and casualty insurance implications of the 2011 tornado season. Unfortunately, because of occurrences of this late spring and early summer, it has become necessary to revisit this topic again.

This year, three tornado systems tore through the Midwest, Texas, and Oklahoma in the last two weeks of May, killing and injuring a number of people and causing estimated insured loss of several billion dollars. According to NOAA's National Climatic Data Center, there is an average of 276 tornadoes each year in the United States. However, averages and statistics matter little to those who are dealing with the destruction in the aftermath of these disasters.

Although much of this damage will be insured, there are issues to consider in determining what is covered and what is not. One of the major concerns for partially damaged buildings, such as those where roofs are torn off or walls breached but the property remains standing, is the occurrence of mold that so frequently follows these types of disasters.

Mitigating Mold

The Centers for Disease Control and Prevention (CDC) recommend that damaged buildings be cleaned up and dried out within 24 to 48 hours after disasters in order to help prevent mold from developing. Building owners are urged to open doors and windows and to use fans to dry out their structures. All porous materials that have been wet for more than 40 hours can remain a source of mold growth, according to the CDC, and therefore should be removed or dried thoroughly. People who are allergic to mold may become short of breath, according to the CDC, and those with weakened immune systems and chronic lung disease may develop mold infections in their lungs. The CDC and the Federal Emergency Management Agency (FEMA) recommend that building owners store items outside of their buildings until insurance claims can be filed.