Insidious Mold Fraud

Mold has existed before humans and will probably outlast us but recent huge mold insurance claims have inspired fraudsters to make some quick money. Wiser fraud examiners and adjusters now have ways to preempt fraudulent claims. Mold was their friend.  

The seven Houston, Texas, associates thought they had a perfect scheme. The perpetrators would purchase and insure several two-story homes. On random weekends, they would pretend to be away but would intentionally flood the homes with water hoses or by damaging water pipes. A plumber would repair the lines before an insurance adjuster arrived. The defendants would then file claims to obtain the full policy limits of the insurance coverage for their water- and mold-damaged homes and personal property along with additional living expenses. Some homes were flooded more than once.

They “cooked” at least one house by closing all the doors and windows and then turning on the furnace. The resulting heat and humidity from the evaporating water accelerated the growth of mold spores that exist naturally and harmlessly in all American homes.