5th Circuit Reaffirms Validity of Texas Mold Exclusion

NEW ORLEANS - The 5th Circuit Court of Appeals has issued its second ruling on the Texas homeowners' mold exclusion in a week, reaffirming its opinion that the exclusion unambiguously bars coverage for mold damage to a dwelling. Salinas v. State Farm Lloyds, No. 06-40121 (5th Cir. Ct.).

In issuing an unpublished opinion on Feb. 28, the Circuit Court quoted from a concurring opinion issued on Feb. 22 in Carrizale v. State Farm Lloyds (No. 06-40286, 5th Cir.), which held that the standard policy's exclusion repeal, or exception, refers to personal property, and doesn't apply to mold damage to the …