Court Upholds Policy Limit on Mold Damage to Hawaiian Mall

HONOLULU - A federal court has upheld the validity of a $15,000 cap on mold damage in a $5 million flood policy issued to the managers of a shopping mall in Hawaii, and also limited coverage to "necessary repairs" rather than policy limits or a replacement structure. MMI Realty Services Inc. v. Westchester Surplus Lines Insurance Co., No. 07-00466 BMK (D. Hawaii).

Magistrate Judge Barry M. Kurren of the U.S. District Court for the District of Hawaii said in his Nov. 14 ruling that the limit on coverage for mold and related renovation costs was unambiguous, and applies to testing …