Habitation risks such as apartments and including condominiums, hotels, assisted living communities, college dormitories, homeowner associations, and healthcare facilities have significant indoor and outdoor environmental exposures whether already built or new construction. While mold is a major risk, other exposures exist such as lead, asbestos, radon, carbon monoxide, soil contamination, underground storage tanks, and bacteria outbreaks like MRSA and Legionnaires Disease. Universal exclusions for pollution, mold, and bacteria related losses in property and general liability policies have significantly increased the need for environmental insurance.
Litigation involving environmental risks is pervasive. Thousands of claims are filed each year in the United States. The legal costs can be staggering for any building owner. More than 9,000 claims of personal injury, property damage or other loss caused by mold are pending in the nation’s courts, and awards for property damage alone typically range from $200,000 to $400,000. Please see the following listing of losses on the following pages.
The NATIONAL E&S APARTMENT PROGRAM policy protects apartment owners and managers from environmental risk excluded in property and general liability policies. The policy provides the following coverage enhancements:
o First party clean-up costs
o Specific clean-up standards applying to mold and fungi
o Third party bodily injury & property damage
o Defense costs & income loss protection
o Mold/fungus/microbial matter/bacteria coverage
o Limits up to $10 million are available
o Multiple locations insured on a single policy
o Diminution in property value due to environmental conditions
o Quick non-binding indications can be provided with a Statement of Values