Fungi Endorsement Application

I have a mold claim on a form 3 homeowner policy. They have the fungi coverage endorsement. The endorsement states we will pay up to $10,000 for loss due to fungi if the loss is caused by a peril insured against. Like all policies, it excludes water loss from back up of sewers and drains. I agree with that. However, an endorsement I added to the policy covers water back up with a $1000 limit. It states “we will cover risk of direct physical loss to property which backs up through sewers and drains.” The company has agreed to pay the $1000 for warped floors due to the back up of sewers and drains due to sump pump failure. It refuses to pay for the resulting mold damage. I contend even though back up is not covered by the basic policy, we make back up a covered peril by the endorsement so the fungi endorsement should pay for the mold damage. Please advise. I can fax or e-mail both endorsements if needed.

Indiana Subscriber

The fungi endorsement pays up to $10,000 for fungi that ensue from a peril insured against. The endorsement that adds water back-up and sump overflow states that “in consideration of the additional premium and subject to limit of liability specified, the policy to which this endorsement is attached is extended as follows:” The endorsement then goes on to add various coverages, including the water back-up. You are correct in that this endorsement makes water back-up a covered peril, so the $10,000 under the fungi endorsement is available for the resulting mold damage.