Mich. Court Denies Coverage for Mold Related to House Fire

TROY, Mich. - Michigan's Court of Appeals reaffirmed April 6 that a mold exclusion in a homeowner's policy bars coverage even where the underlying cause is covered water damage from a fire. Ortiz v. Allstate Insurance Co., No. 254777 (Mich. Ct. App.).

In reversing a lower court, the Court of Appeals cited its recent holding in Hayley v. Allstate Insurance Co. (262 Mich. App. 571; 686 NW2d 273 [2004]), which interpreted the same policy at issue in this case (See HarrisMartin's Columns-Mold, July 2004).

Marcelo and Carrie Ortiz sued Allstate Insurance Co. in April 2002 for coverage of mold, which …