LA. MOLD NOTICE ‘MISLEADING’

A notification from State Farm to its Louisiana homeowner customers citing an exclusion of mold coverage is misleading, according to acting Commissioner of Insurance Robert Wooley. The notice allegedly told State Farm homeowners customers that effective with all renewals, its new Fungus Exclusion Endorsement eliminates coverage for any type of fungus, including mold. However, Wooley said the “Louisiana Department of Insurance requires an insurance company to cover mold damage resulting from a sudden or accidental covered event.” He added that repair or replacement of the damage property, as well as the cost for cleaning up mold, are covered. Wooley noted that a standard homeowners policy does not provide coverage for seepage, damage arising from wear and tear, or the failure to do proper maintenance. In Louisiana, as in most other states, insurers do not have to pay for mold claims that arise from slow leaks associated with home maintenance problems. They also do not have to pay for mold testing and remediation. “Policyholders need to be aware that there is no blanket exclusion for mold coverage in Louisiana,” Wooley said. He has scheduled a meeting with State Farm officials “to sort out any confusion.”