Crisis in Texas:
Will Insurers Cover Homes with Prior Water Damage?

photo-5icTendiche winter of 2000-2001 was a harsh one in Texas. Winter storms damaged the roofs, walls and floors of homes across the state. Insurance companies such as Progressive Casualty Insurance Company, Allstate Insurance Company and Farmers Insurance Group paid to repair that damage as part of their homeowners policies. Months later, in the spring of 2001, repair contractors and indoor air quality experts began finding mold growing behind walls, underneath flooring, in basements, and throughout ventilation systems in previously water-damaged buildings.

Inhabitants of these homes are claiming that physical symptoms they are experiencing, such as respiratory distress and …