Insurance Coverage Issues in Mold Litigation

    Third party liability claims involving mold usually arise from situations in which the underlying issue is a water intrusion problem that results in mold damage to third party property. In fact, most third party claims arise out of another party's first party property damage claim.

    Example: A landlord has a pipe break in a rental unit that causes water and mold damage to the tenant's clothing and other personal belongings. While the water and mold damage to the building itself would constitute a first party claim on behalf of the landlord, the tenant may have a potential claim as a third party for damage to his or her personal property as a result of the loss.

    As a result of alleged improper conduct/workmanship or inaction by the property owner in remediating the water intrusion problem and/or the resulting mold damage, you might find one (or more) of the following litigation scenarios:

    (1)       Homeowner, Property Owner, or School versus Builder, Developer,                         Architect, Subcontractors (HVAC), or Remediation Consultants;

    (2)       Condominium Owner versus Homeowners' Association;

    (3)       Tenant versus Landlord or Property Manager;

    (4)       Buyer of Property versus Seller, Broker, or Contractor; and

    (5)       Employee Disability or Workers' Compensation Claims.

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