Mold Damage is Not a “Physical Loss” According to Court and Insurer

Universal Image Productions, Inc. v. Federal Insurance Company

The U.S. Court of Appeals, Sixth Circuit, holds that mold contamination, while certainly inconvenient and irritating, does not result in a direct physical loss to a building.

The court relied on the opinions of several other courts around the country in determining that direct physical loss or damage requires tangible damage, an actual physical change to the property, or a loss of use of the property.

In this instance, mold contamination did not meet the requirements, and so, the insuring agreement pertaining to direct physical loss or damage was not met.

The insured was not entitled to coverage under the terms of its policy.

Properly Responding to Mold in Your Home (Video)

There is an industry that is growing as rapidly as mold, itself, that sometimes feeds upon the fears of home owners who find or suspect “toxic mold” in their homes.

Knowledge replaces fear … and I found this video to be informative and entertaining.

While I have not independently researched or evaluated the accuracy of the descriptions of medical conditions addressed in the video and cannot personally confirm their accuracy, I enthusiastically support the emphasis that is stressed on identifying the conditions and addressing them rather than spending large sums of money to test, identify and remove the colony – only to have it return the next time you run your air conditioning unit.

This video describes the importance of identifying and addressing the conditions that cause mold to appear and how to properly address them.

Whether the home owner decides to pay to have their mold “tested” and identified or not, they should NEVER hire the same person/company who is “testing” their mold to remove it.


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