The insurer filed a declaratory judgment action seeking a declaration that its policy excluded a claim for remediation of mold discovered after the insurer had paid a water damage claim. This case is Builders Mutual Insurance Company v. Glascarr Properties, Inc., 688 S.E.2d 508 (2010).

 The insured, Glascarr Properties, developed a property in North Carolina and after completing construction of a house, learned that vandals had broken into the house and left water taps running. This caused extensive damage and the insured submitted a claim for $102,161.44 to the insurer, Builders Mutual. The claim was paid, but later on, the insured discovered mold in the house, caused by the water damage. The insured submitted an additional claim for $39,000 for mold remediation but the insurer denied coverage.

The insurer filed a declaratory judgment action seeking a declaration that the policy excluded coverage for the mold damage claim. The trial court ruled in favor of the insurer and this appeal followed.