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Changes to Germania's Farm Mutual Policy Coverage
A Response to the surge in mold claims.

Like most other companies writing insurance in Texas, Germania Insurance had to respond to the rising numbers and costs for claims on Mold found in homes.

The problem had risen to such dramatic levels that many insurance companies stopped or severely restricted writing new policies.  Steps had to be taken to limit the coverage for mold and water damage under home insurance policies.

Here are the changes which were made to Germania Dwelling Policies:
bulletEliminate coverage for damage caused by mold and other microorganisms effective Jan. 1, 2002.
bulletLimit coverage for water damage to only include sudden and accidental discharge, leakage or overflow of water or steam from within a plumbing, heating or air conditioning system, or household appliance including backing up of sewers and drains. Damage caused by repeated leaks is no longer covered. *
bulletLimit payment for a covered loss resulting from the sudden and accidental discharge or leakage of water from a plumbing system located within or under the slab or foundation of the dwelling to no more than a total of 5% of your Coverage A (Dwelling) limit, or $3,500, whichever is greater. *

Germania developed this solution to minimize the escalating cost of home insurance while still providing the essential coverage that is needed by policy holders.


Other companies are non-renewing their current homeowners B (open perils) policies and offering enhanced but more limited Homeowners A policies with named perils coverage.  * Changes effective May 1, 2002.

The standard HomeOwners B form policies under Germania Insurance Company will be non-renewed and renewals offered an enhanced HomeOwners A policy which has similar limitations to those listed above. 

Read A Report from a Texas Doctor about Mold