State Farm to Issue Modified Mold Mailer in Louisiana

Acting Louisiana Commissioner of Insurance Robert Wooley announced that State Farm will issue new information to Louisiana policyholders clarifying the company’s prior notice on mold and fungus claims.

Over the past several months, State Farm has mailed notices to all of its policyholders nationwide stating that the company does not cover mold or fungus. In December, Wooley challenged the language in the mailer after the Department of Insurance received telephone calls from concerned consumers who questioned whether their State Farm homeowners insurance policies did actually cover mold or fungus claims.

“I felt like the notice mailed to homeowners in our state was very misleading. So after two meetings with State Farm officials, the company agreed to issue a clarification on mold coverage to all affected Louisiana policyholders. That should clear up any confusion about the instances in which mold or fungus are and are not removed under State Farm’s policies,” Wooley said.

The acting commissioner said State Farm will mail the following revised notice to all affected Louisiana policyholders on or before March 1, 2003:

Repair of any covered damage resulting from a covered accidental direct physical loss will include the removal of mold or fungus on the items damaged. State Farm will not deny an otherwise covered claim due to the presence of mold or fungus on the items damaged by a covered loss.