California's largest household insurer, State Farm (SF), has ceased writing new business after being hit by massive mould liability claims.
SF holds 22% of the US state's household policies but has declined all new business since May 1st. It is understood to be in direct response to the escalating costs of mould liability claims. Analysts have also said insurers in Texas may follow suit.
According to Jeff Charlton of Phoenix Consultancy, which specialises in disaster management, there are two reasons why the US has been hit hard but the UK has so far been unaffected.
"It is state law and public awareness of the health hazards. Various laws in the UK could make claims relatively easy to establish so the only factor missing may be public awareness. The US insurers have been exceptionally slow to react to the problems of mould and have unfortunately responded to claims rather than react to the cause and effect.
"There can be no doubt that claims will escalate in the UK," he said.
