Texas Court Interprets Renter's Policy to Include Mold Coverage

HOUSTON - Ruling on an issue of first impression, a Texas appellate court held Feb. 26 that an apartment renter's policy unambiguously covers mold damage arising from water leaks. Christine H. DeLaurentis v. United Services Automobile Association, No. 14-03-00164-CV (Texas 14th App. Ct.).

The Texas 14th Court of Appeals reversed summary judgment granted by the Harris County District Court in favor of insurer United Services Automobile Association, and also reinstated Christine H. DeLaurentis' bad faith claim against USAA.

DeLaurentis submitted a claim to USAA in June 2001, asserting that a leaking air conditioner had caused mold contamination in her apartment. …