The personal auto policy will pay for direct and accidental loss to the insured's covered auto and its equipment. This is a direct loss since the interior of the car has been actually physically damaged. As for accidental, that is interpreted from the insured's viewpoint. If the insured did not know the back seats were soaked with water and did not know that mold was growing while she had the car parked in the garage, that is an accidental incident from the insured's point of view. So, the terms of the insuring agreement have been met.

None of the policy's exclusions apply. There is no pollution or mold exclusion. And the wear and tear exclusion is for the normal aging of a car from its use. For example, if the hole in the convertible top was caused by constant exposure to the sun and wind or just by the top aging over several years, that would be a loss that the car policy would not cover because of the wear and tear exclusion. In this case, the loss was the result of moisture and mold; and even though mold grows over a period of time, this was not the normal aging process of the car itself. The claim should be covered as an other than collision loss.