Minnesota Court Rules Insurer Need Not Indemnify Owners of Mold-Infested Home

ST. PAUL, Minn. - A state appeals court in Minnesota has concluded that an insurer is not obligated to cover mold-related losses in an insured's home because the homeowner's policy plainly states that mold damage is not insured, despite the insurer's previous payments for mold remediation. Sather, et al. v. State Farm Fire & Casualty Insurance Co., No. C3-01-1268 (Minn. Ct. App.).

In its de novo review of the case, the Court of Appeals of Minnesota concluded on March 12 that the language contained in plaintiff Jeffrey Scott Sather's State Farm homeowner's insurance policy was plain and provided that mold …