Texas Judge Refuses to Follow Mold 'Ensuing Loss' Decision

MCALLEN, Texas - A federal district court judge has refused to follow the reasoning of the recent Fiess v. State Farm decision and determined that mold damage is covered if it ensues from a loss that is otherwise covered under the policy. Oscar and Graciela Flores, v. Allstate Texas Lloyd's Company, No. M-02-410 (S.D. Texas, McAllen Div.).

In the July 16 opinion, U.S. District Judge Randy Crane also ruled that a homeowner's failure to provide initial notice of a water event to the homeowner's insurance provider does not necessarily prevent coverage of ensuing mold damage if the failure to provide …