Mich. Appeals Court Finds No Coverage for Ensuing Mold Loss

LANSING, M ich. - Michigan's Court of Appeals reversed a trial court June 22 and held that a specific mold exclusion precludes coverage for mold damage even if the damage was caused by an otherwise-covered water intrusion. Hayley v. Allstate Insurance Co., No. 245233. (Mich. App.).

Two of the panel's three judges found for Allstate Insurance Co., which appealed after the Wayne Circuit Court denied summary judgment to the insurer on claims for coverage of mold damage in the home of Dallas and Christine Hayley.

Allstate paid a claim for water damage in 1999 resulting from ice damming on the …