Our named insured passed away in November 2007. The house remains unoccupied. In late December or early January 2008 the (non-resident) trustee moved the personal property from the house. The house remains unoccupied and vacant. The trustee never notified the company of the change in conditions. The trustee ultimately decided that she no longer wanted to be involved with the estate. The named insured's brother who lives in another state, petitioned the court and was appointed the new trustee. On April 7, 2008, the brother/trustee inspected the unoccupied/vacant property and discovered a water loss occurred sometime between January and April 2008. A refrigerator line leaked and water damaged the house, resulting in mold growth. The company's underwriting department indicates that it would have canceled the policy if it knew the house was unoccupied in November of 2007. We seek your assistance with the following coverage questions:

1. Can the policy be voided or canceled due to the failure of the trustee to notify us of the change in occupancy?

(Please refer to the HO 01 27 05 02 Special Provisions – Nevada Sections I & II – Conditions)

2. Does coverage apply for the abatement of the 'hidden' and/or 'open and obvious' mold?

(Mold was open and obvious at the time of the discovery of the loss. The policy provides coverage for 'hidden' mold, but what obligation or coverage applies for the open and obvious mold?)

South Carolina Subscriber

Upon the death of the insured, the homeowner's policy provides coverage for the legal representative of the estate. There is no requirement that the carrier be notified of the death of the insured at the time.

The policy doesn't state conditions for voiding, although the policy can be canceled for change in conditions with 30 days notice to the insured. The claim would still be covered, however.

Mold, fungi or wet rot are excluded unless hidden within the walls, ceilings, or floors. So the obvious mold is excluded, while any mold that has grown in a hidden area is covered.

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