Texas Appellate Court Holds Mold Damage is Covered Under Standard Homeowner’s Policy: Late last week, an intermediate Texas appellate court held remediation costs for mold damaged dwelling and contents are covered under the standard HO-B homeowners policy if the mold is caused by an “accidental discharge, leakage or overflow of water or steam from within a plumbing, heating or air conditioning system or household appliance.” The court distinguished the Texas Supreme Court’s recent decision in Fiess v. State Farm Lloyds, 202 S.W.3d 744 (Tex. 2006) which held that the HO-B form did not cover mold damage. Said the court: “The mold damage at issue in Fiess was caused by water leaks in the roof and around some windows,” not mold damage caused by plumbing leaks. The court concluded by stating: “we hold as a matter of law that the HO-B policy covers any loss (including mold) to the dwelling or its contents resulting from a plumbing leak, subject to the limits of liability…” Page v State Farm Lloyds, (Tex App.-Waco 2008).
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We will cover this and other notable cases at our full day, fully accredited Ultimate Claims Handling Seminar on October 10, 2008 at CityPlace Conference Center, in Dallas Texas. Registration applications will be sent in August. Mark your calendar now.