Texas is the moldiest state according to insurance companies. In fact, 70% of insurance claims due to mold occur in Texas. This is partly because of the hot, humid climate in Texas and its proximity to the Gulf Coast region. But another reason insurance companies are being forced to pay millions on mold claims is from an insurance scam known as “house cooking”.
House cooking is a mold sampling trick used by unethical mold inspectors to make your house appear moldier than it actually is. The sample is accurate, and it actually comes from your house, but the circumstances in which it is produced have been changed to inflate the amount of mold in the air.
The recipe for house cooking includes putting wet towels in your house, spraying down the draperies, and hosing down the furniture to increase moisture. Then ,the ventilation is decreased by closing the windows and cranking the furnace. This all serves to elevate the number of mold spores in the air when the sample is taken.
Based on these conflagrated results, mold inspectors urge immediate evacuation of the property and move you in to a rental property that gives the inspectors a kickback. The mold claim is then maximized for the insurance company to pay. Sometimes inspectors conspire with homeowners for a percentage of the insurance claim.
Because of this dishonest practice, Texas insurance companies have had to raise their rates overall in response to the enormous settlements they have had to pay. Fortunately, the public is now becoming aware.
Fred Rich, a public adjuster, was recently sentenced to four years in prison and $629,000 in restitution after pleading guilty to fraud and money laundering that stemmed from false mold claims and other acts of insurance fraud.
Rich received a 10% commission for the money his clients – mostly his friends – won from insurance companies after inflating mold claims. At the same time he relocated the owners to one of his rental properties where he profited from the incurred living expenses that were also paid by insurance companies.
The best prevention against house cooking is awareness. Make sure to use a reputable inspector for all your mold sampling and keep an eye out for the fraudulent tactics used to ‘cook’ mold.
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