Our HO 00 03 05 01 insured suffered severe snow and ice damage to his roof. Water backed up under the shingles and leaked into the unfinished attic. It ruined the insulation and resulted in a very bad mildew smell. The insurer has denied replacement of the insulation, based on the mildew exclusion.

The contractor whom the insurer paid for other work on this claim says that the only way to get rid of the odor is to replace all of the insulation in the attic.

We would appreciate your opinion.

South Dakota Subscriber

The insurance company is obligated to put your insured back in the same position as prior to the loss—i.e., a house without a mildew smell.

Yes, mildew is excluded. However, the exclusion refers to mildew that occurs naturally, over time, perhaps in an improperly vented attic. This mildew occurred when a covered peril—the snow and ice—allowed moisture to enter and cause the insulation to mildew. Since the opinion of the expert (the contractor) is that all the insulation must be replaced, that is what the insurer owes.