Texas Supreme Court Declines to Review Second Mold Coverage Decision

AUSTIN, Texas - One day after ruling that mold is not an ensuing loss under a standard homeowner's policy, the Texas Supreme Court declined to review a similar holding on somewhat different facts by an intermediate appellate court. Lundstrom v. United Services Automobile Association-CIC, 06-0209 (Texas Sup. Ct.).

On Aug. 31, the high court ruled 7-2 in Fiess v. State Farm Lloyds (No. 04-1104) that an ensuing loss provision in a standard Texas homeowners policy (HO-B) cannot be read to provide coverage for mold damage where the policy specifically excludes mold (See related story on Fiess in this issue).

On …