The Office of the Commissioner of Insurance (OCI) will apply the following under s. 631.20(2)(a)1., Stats., with respect to mold coverage in property and casualty insurance policies:
Personal Lines Policies - OCI expects homeowners insurers to cover property damage from mold as a result of a covered cause of loss to the extent provided for any other damage caused by a covered cause of loss. However, the office will not disapprove policy form filings that limit property damage coverage from mold that arises from a covered cause of loss so long as the property damage coverage is at least $10,000, and the liability coverage is at least $50,000 from mold that arises from a covered cause of loss. Personal lines policies include, but are not limited to, automobile and all versions of the homeowners policies. Personal umbrella and excess liability forms may contain language meant to totally exclude mold since the underlying coverage may be limited.
Commercial Lines Policies - OCI will not disapprove policy form filings that exclude mold coverage in commercial lines policies. Insurers, however, are encouraged to offer mold coverage buyback endorsements or riders for those commercial consumers who desire such coverage.
Any questions concerning this bulletin may be directed to Phil Kress of my staff. Phil may be reached at 608-266-0430 or firstname.lastname@example.org.
Bulletin of December 19, 2002, Regarding Updated Guidance on Coverage Issues Concerning Mold