Insurer Persuades Texas Court to Dismiss Claims Caused by Deterioration, Not 'Damage'

HOUSTON - Citing other recent mold cases, a judge in the U.S. District Court for the Southern District of Texas held that mold damage resulting from a deteriorated roof is not covered under a standard homeowner's policy. Garza v. Allstate Texas Lloyds, No. M-04-270 (S.D.Texas).

Osvaldo Garza sued Allstate Texas Lloyds for breach of contract and violations of the Texas Insurance Code and Deceptive Trade Practices Act after the insurer denied Garza's claim for coverage for water and mold damage to his home.

Allstate moved for summary judgment, maintaining that the claimed damage to the hall, heating and air-conditioning units …