Policyholder Told to Repay Great Northern $108,000

NEW YORK - Great Northern Insurance Company will recover $108,000 it paid for its policyholder's living expenses after a New York trial court concluded that the ensuing loss provision in a homeowner's policy doesn't cover mold. Hritz v. Saco, No. 601015/03 (N.Y. Supr., N.Y. Cty.).

Mary E. Hritz complained that a home she purchased in Connecticut in May 2001 was contaminated with mold from undisclosed water damage. Hritz sought coverage from her homeowner's insurance, Great Northern. The claim was ultimately denied, but Great Northern had advanced living expenses to Hritz while her claim was pending, subject to an agreement that …