Texas Appeals Court Rejects Mold Damage As 'Ensuing Loss'

HOUSTON - A Texas appellate court rejected an insured's claim that mold damage fell within the ensuing loss exception to a mold exclusion on Jan. 26, saying such a finding would be counter to a binding 1975 opinion. Lundstrom v. United Services Automobile Association B CIC, No. 14-04-00357-CV (Texas 14th Ct. App.).

The issue of ensuing loss coverage is currently before the Texas Supreme Court in Fiess v. State Farm Lloyds (No. 04-1104).

The Fourteenth Court of Appeals compared Bruce and Vonnie Lundstrom's claim for mold damage to the insureds' claim for water damage in Lambros v. Standard Fire Ins. …