Many business people have had rental buildings or rental houses built in the early part of this decade while the economy was going great guns. However, many of those same properties are now vacant, or were neverThe Situation:
A commercial real estate campus consisting of multiple buildings is faced with a multi-million-dollar mold clean-up when mold is discovered in several of the buildings that have been left vacant for the past couple of years. It turn out that water damage went undiscovered for quite some time because the building was empty.
Mold is part of the natural environment. In the outdoors, molds play a part in nature by breaking down dead organic matter such as fallen leaves and dead trees- but indoors, mold growth is a problem. Mold reproduces by means of tiny spores; the spores are invisible to the naked eye and float through outdoor and indoor air. Mold has the potential to cause serious health problems because it produces allergens and in some cases, potentially toxic substances. Inhaling or touching mold or mold spores may cause allergic reactions in sensitive individuals. It is a MAJOR Liability issue, as well as being very difficult to remove from a building.
There is potential to cover mold remediation and clean-up, even in vacant buildings. It should definitely be purchased.
Coverage basics:
• 1st party clean-up costs
• 3rd party property damage
• 3rd party bodily injury
If you have any vacant buildings, please look into getting environment liability and property coverage. Otherwise, it could be VERY costly to you in the long run.
Bobby Bland PWCA, CIC
Vice President
Commercial Risk Service
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