Judge: Exclusion 'Meaningless' If Ensuing Mold Loss Covered



DOCUMENTS
  • Order


ATLANTIC CITY, N.J. - A New Jersey trial judge ruled April 2 that homeowners seeking insurance coverage for mold damage cannot bypass a policy's mold exclusion by seeking coverage for an 'ensuing loss.' Brick v. Lexington Insurance Co., No. ATL-L-1285-03 (N.J. Super., Atlantic Cty.).

Atlantic County (N.J.) Superior Court Judge Carol B. Higbee said she agreed with the U.S. District Court for the Southern District of Texas' decision to deny coverage in Fiess v. State Farm (2003 WL 21659408 [S.D. Texas). Fiess is currently on appeal to the U.S. Court of Appeals for the Fifth Circuit, which was expected to …






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