Court Reverses Judgment, Says Mold Exclusion Precluded Coverage of Ensuing Loss

LANSING, Mich. - A state appeals court has reversed a decision denying summary judgment to an insurer that refused to pay for mold damage, which ensued from a homeowner's covered water damage claim. Dahlke v. Home Owners Insurance Company, No. 239128 (Mich. Ct. App.).

Determining that an exclusion in the policy precluded coverage for the mold-related claim, regardless of how or when it occurred, the Michigan Court of Appeals said Dec. 23 that the Ingham County Circuit Court erred when it denied Home Owners Insurance Company motion for summary judgment in the case.

The underlying claim was filed by …