Exclusion Precludes Coverage of Mold Damage at Apartment, Texas Court Rules

DALLAS - Mold contamination at a Texas apartment complex was the result of contaminants 'dispersed' within the covered properties and is therefore subject to an exclusion in the building owner's insurance policy, a federal court has ruled. Lexington Insurance Company v. Unity/Waterford-Fair Oaks, Ltd., d/b/a Oak Meadow Apartments, No. 3:99-CV-1623-D (N.D. Texas, Dallas Div.).

According to the March 5 decision, Lexington Insurance Company established that coverage of mold damage to the Oak Meadow Apartments was excluded under the 'Pollution, Contamination Debris Removal Exclusion,' even though the mold damage might have been caused by a covered event.

The court granted the …