Mold Exclusions & Conflicting Court Decisions

0
3K

A Video Explaining How Insurers Avoid Mold Litigation


Read the full article at https://www.linkedin.com/pulse/mold-exclusions-conflicting-court-decisions-barry-zalma-esq-cfe and see the full video at https://rumble.com/vqbcjq-mold-exclusionsconflicting-court-decisions.html and at https://youtu.be/Q1DnDWQE-xk and at https://zalma.com/blog plus more than 4000 posts.


Insurance companies in most states have been permitted to exclude mold coverage from new and existing policies. There are hundreds (perhaps thousands) of pending cases against homeowner insurance carriers seeking coverage for losses incurred as a result of mold contamination. In many of these homeowner policies, damage “caused by” mold contamination is expressly excluded from coverage. In the face of this exclusion, homeowners often take the position that their claimed damages were not “caused by” mold, but rather that the damage was caused by some form of water intrusion which resulted in mold contamination, or some other covered peril, and therefore the loss is covered. Insurers often contend that the exclusion applies to any claimed damages concerning mold, arguing either that the damage itself was caused by mold or some other excluded cause or event.


State courts that have faced this issue cannot agree. Some have held that the “caused by” exclusion applies to all mold damage, while other courts have found an ambiguity in the exclusion. Summary judgment for either party is almost impossible because coverage decisions are determined by the facts presented at trial.


The most recent ISO forms, which are used by many insurers in their homeowner policies, contain the following exclusion regarding mold:


We will not pay for loss or damage caused directly or indirectly by [mold]. Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss. But if [mold] results in a Covered Cause of Loss, we will pay for the loss or damage caused by that Covered Cause of Loss.


Courts across the country have reached different conclusions regarding its meaning and applicability. The video details some of the cases that deal with mold exclusions and the ensuing loss clauses.


ZALMA OPINION


Insurers, by carefully writing their policies, have been able to avoid most mold claims and the resulting litigation after the claim is denied. Some decided to provide coverage for mold claims but set low limits of liability while others drafted clear and unambiguous exclusions. Those insurers have avoided some litigation while most have found the new exclusions or limitations of liability to allow the insurer to successfully defend the suits.


© 2021 – Barry Zalma

 

Sponsored

We are 100% funded for October.

Thanks to everyone who helped out. 🥰

Xephula monthly operating expenses for 2024 - Server: $143/month - Backup Software: $6/month - Object Storage: $6/month - SMTP Service: $10/month - Stripe Processing Fees: ~$10/month - Total: $175/month

Xephula Funding Meter

Please Donate Here

Search
Categories
Read More
Politics
HUGE! Attorney Sidney Powell CONFIRMS Alleged Dominion Servers in Germany Were Confiscated — VIDEO
Last week Rep. Louie Gohmert told Chris Salcedo on Newsmax that people on the ground in Germany...
By Meme King 2020-11-19 22:48:10 0 5K
Other
The Four Corners Rule Strikes Again
Evidence that the Defendant Intentionally Shot the Plaintiff Must be Ignored Because Plaintiff...
By Barry Zalma 2021-07-28 12:16:18 0 3K
Politics
Why Is Men's Health Trying To "Debunk" "Conspiracy Theories"?
I came across this article while researching some shit, nothin to do with adrenochrome, but I saw...
By TKDRL Mogwai 2022-05-03 02:24:33 0 7K
Other
MULTIPLE PERSONALITY SALVATION DISORDER
Friends, what you are about to hear has caused more controversy and more griping and...
By Ronnie James 2021-04-28 22:21:57 0 5K
Other
It is Prudent for an Insurer to Have Anti-Fraud Programs
How Prudent Insurers Profit From Effective Anti-Fraud Programs Read the full article at...
By Barry Zalma 2020-10-26 13:11:29 0 4K