'Toxic Mold' Damage to Bed-and-Breakfast Is Recoverable Under Policy, Appeals Court Says

SPOKANE, Wash. - In reversing a trial court's decision, an appeals court in Washington state found that toxic mold damage to a bed-and-breakfast is recoverable under the homeowners' policy. Thomas and Karen DePhelps, Petitioners, v. Safeco Insurance Co. of America, Respondent; State Farm Fire & Casualty Co., et al., Defendants, No. 21029-4-III (Wash. Ct. App., Div. III).

According to the April 8 published opinion, the dispute centered on the classification of the building as a business instead of a residence. The appeals court ruled that the policy covers the owners' use of the building as a bed-and-breakfast and, therefore, the …