La. Court Says Mold Exclusion Applies to 'Windstorm' Damage

NEW ORLEANS - A mold exclusion in a $100 million excess insurance policy applies to mold caused by "windstorm" damage at Tulane University during Hurricane Katrina, a federal judge ruled on Aug. 27. Ace American Insurance Co. v. Administrators of the Tulane Educational Fund, No. 07-3749 (E.D. La.).

Judge Ivan L.R. Lemelle of the U.S. District Court for the Eastern District of Louisiana declined to award summary judgment to Ace American Insurance Co. for Tulane's failure to allocate losses but ruled as a matter of law that the mold exclusion applied "even if the mold is caused by windstorm," where …