Opinion ID: 895236
Heading Depth: 1
Heading Rank: 4

Heading: Fiess

Text: In Fiess, Tropical Storm Allison caused flood damage to the Fiesses' home. 202 S.W.3d 744. An inspection revealed that the flooding had caused some mold contamination, but the bulk of the mold was caused by roof leaks, plumbing leaks, leaks in the HVAC system, exterior door leaks, and window leaks, all of which had occurred before the storm. Id. In the course of the ensuing litigation over the scope of the Fiesses' mold coverage, the United States Court of Appeals for the Fifth Circuit certified to us the question whether the ensuing-loss provision in part 1.f of the HO-B policy's Section I-Exclusions provided coverage for mold contamination caused by water damage that is otherwise covered under the policy. Id. at 745-46. Concluding there was no ambiguity in the policy language, we answered that it did not. First, we reasoned that the ensuing-loss provision reinstates coverage only as to losses caused by an intervening cause (like water damage) that in turn follow from an exclusion listed in paragraph 1(f). Id. at 749 (citing Lambros v. Standard Fire Ins. Co., 530 S.W.2d 138 (Tex.Civ. App.-San Antonio 1975, writ. ref'd)). In other words, the water damage must be the result, not the cause, of the types of damage that the coverage exclusions enumerate. Id. We also reasoned that the ensuing loss must be caused by water damage, not merely water, else the insurance policy would become a maintenance agreement. Id. at 750. We thus concluded that the ensuing-loss clause did not reinstate coverage for otherwise excluded mold damage. While our decision in Fiess was unquestionably broad, we cannot say that it unequivocally vitiated coverage for all mold damage no matter the cause, as State Farm claims. We specifically noted that the Fiesses failed to preserve a claim for mold caused by air-conditioning and plumbing leaks. Id. at 750 n. 26. And we expressly declined to address personal property coverage for mold damage that resulted from plumbing leaks because the Fiesses failed to appeal that issue. Id. at 746 n. 3. Nevertheless, our policy interpretation in Fiess is more consistent with State Farm's position today than with Page's reading of the policy language. See Carrizales v. State Farm Lloyds, 518 F.3d 343, 348 (5th Cir.2008).