"State Farm will not deny an otherwise covered claim due to the presence of mold or fungus on items damaged by a covered loss," the notice goes on to say.

Mr. Wooley's meetings with the company came after the carrier notified renewal customers that its new Fungus Exclusion Endorsement eliminated coverage for all mold damage. State Farm, with 281,000 policyholders, is Louisiana's largest writer of homeowners insurance.

A State Farm spokesperson said then that the issue was a "misunderstanding" that the carrier would try to work out.

The company's original notice said, "Effective with this renewal, a fungus (including mold) exclusion endorsement will become part of your policy. This change eliminates coverage for any type of fungus including mold."

As in most other states, Louisiana regulators said, carriers aren't required to pay for mold claims associated with slow leaks caused by home maintenance problems. They also don't have to pay for mold testing and remediation.

But the state does require insurance companies to cover mold damage resulting from a sudden or accidental covered event. "The expenses for repairing or replacing the damaged property, including the costs to disinfect mold, are covered," Mr. Wooley said.

One example of a sudden and accidental covered event would be a pipe that bursts within a wall because of freezing weather, causing water damage that results in mold, he added.