Calif. Court Finds No Coverage For Mold Caused By A Covered Peril

LOS ANGELES - An insurer did not violate California law on efficient proximate cause by denying coverage for mold damage caused by a sudden and accidental release of water because the policy "plainly and precisely communicated" that mold damage was not covered, a state appellate court has ruled. De Bruyn v. The Superior Court of Los Angeles County, No. B198622 (Calif. App., 2nd Dist.).

California's 2nd District Court of Appeal ruled on Jan. 14 that the exclusion applies even when the mold resulted from a covered sudden and accidental discharge of water.

Rudolf Andre De Bruyn returned home from vacation …