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Posts Tagged ‘decade’

Insurance Coverage For Bedbug Infestations Now Available

July 19th, 11

Some insurance providers are now offering bedbug insurance, according to the LA Times. Bedbugs are tiny, seven millimeter long insects that invade hotel rooms, apartment buildings and dorms causing expensive problems. They’re very hard to eliminate creating a costly issue. The newspaper reports that most infestations, whether it’s raccoons or rats, aren’t typically covered by insurance policies. But now there is coverage available for bedbugs.

Lawmakers put pressure on insurance companies to offer coverage since some property owners were experiencing large losses in value because of the pesky bugs. Companies now offering the insurance include Aon Risk Solutions of Chicago, Willis North America, and NSM Insurance Group. “You’ve got legislators in the state of New York Assembly who are trying to make this mandatory that insurance companies do this,” said John Lafakis in the LA Times, senior vice president at Willis North America and program manager for the bed bug recovery insurance. “So we figured, ‘You know what, we’re going to beat everyone to the punch.’”

For some reason bedbug populations are exploding. A decade ago the issue wasn’t big enough to require insurance coverage. “Ten years ago it was considered a minor pest issue,” Greg Gatti, a director at Aon Risk Solutions, told the LA Times. The newspaper says killing off bugs in an infested room costs between $600-$800. But once word gets out that a hotel is infested, the financial impact could bite even deeper.

Tags: disease, bug recovery insurance, bedbugregistry, Eastern bat bugs, decade, Bedbug infestation