Everything you need to know about the new mold endorsement.

According to Commissioner Montemayor, "The HO-162A endorsement is intended to effectively return coverage to what it was prior to the recent sharp escalation of mold claims."

Endorsement No. HO-162A Homeowners Amendatory
Effective Mandatory Endorsement
January 1, 2002 (Applicable to Form HO-B only)

SECTION I - EXCLUSIONS, Exclusion 1. f. is amended to read as follows:

f. We do not cover loss caused by:
(1) wear and tear, deterioration or loss caused by any quality in property that causes it to damage or destroy itself.
(2) rust or rot.
(3) dampness of atmosphere, extremes of temperature.
(4) contamination.
(5) rats, mice, termites, moths or other insects.

We do cover ensuing loss caused by collapse of building or any part of the building, water damage or breakage of glass which is part of the building if the loss would otherwise be covered under this policy.

SECTION I - EXCLUSIONS, Exclusion 1. l. is added to read as follows:

l. We do not cover loss caused by or resulting from mold, fungi or other microbes. However, we do cover ensuing mold, fungi or other microbial losses caused by or resulting from sudden and accidental discharge, leakage or overflow of water steam if the sudden accidental discharge, leakage or overflow of water or steam loss would otherwise be covered under this policy.

Sudden and accidental shall include a physical loss that is hidden or concealed for a period of time until it is detectable. A hidden loss must be reported to us no later than 30 days after the date you detect or should have detected the loss.

For purposes of this exclusion, ensuing mold, fungi or other microbial losses covered under this policy include reasonable and necessary repair or replacement of property covered under Coverage A(Dwelling) and/or Coverage B(Personal Property).

We do not cover the cost for remediation, including testing of ensuing mold, fungi or other microbes. We do not cover any increase in expenses for Loss of Use and/or Debris Removal due to remediation and testing of ensuing mold, fungi or other microbes.

Remediation means to treat, contain, remove or dispose of mold, fungi or other microbes beyond that which is required to repair or replace the covered property physically damaged by water or steam. Remediation includes any testing to detect, measure or evaluate mold, fungi or other mmicrobes and any decontamination of the residence premises or property.

Prescribed by the Texas Department of Insurance
Endorsement No. HO-126A - Homeowners Amendatory Mandatory Endorsement
Effective January 1, 2002

NOTE: Some companies will allow you buy back this coverage. See your insurance agent for details.