Sacramento, CA - Tenants at Sacramento's Ardendale Apartments started seeing warning signs a few months ago, warning that their complex "contains chemicals known to cause cancer and birth defects."

"It scares me in the sense that, where exactly and how exactly are these chemicals going to affect me?" said tenant Ryanne Durnin.

The property manager, Cynthia Jenkins, said that the signs simply refer to chemicals that have always been around the pool and in the laundry room. They are chemicals that are possibly used by a pest control company.

"No new chemicals are being used or anything like that," said property manager Cynthia Jenkins.

But apartment complexes are now among the businesses required to post the state's Proposition 65 warning. So signs are showing up all over California. But just as the signs appeared the Ardendale complex, so did notices in the mail, telling tenants that their rental agreements now include a toxic mold clause.

"Mold is now a big thing in the state of California," Jenkins said.

Property managers say that there's no new health threat but that there is a serious financial one, because the fear of toxic mold has insurance companies running scared.

The company that manages Ardendale and several other complexes alledgedly claimed  that its insurance claims jumped from $28,000 last year to $62,000 this year.  Most people do not realize that much of these premiums are related to defense legal fees as opposed to admission, ethics and responsibility.

The owner of another, smaller complex claimed that his premiums doubled and he had no choice but to raise rents. Where all of this mystery money goes, nobody knows, but the insurance industry has been duping people for years and many are brainwashed that insurance exists and Santa Claus is real.  Managers are urging tenants to work with them the instant they see the slightest sign of mold.  Unfortunately, many mold problems exist well before tenants move in and hundreds of thousands of these innocent victims are left defenseless due to their "trust" in the system.