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STATE OF MICHIGAN COURT OF APPEALS

LAWRENCE WILLIAMS and LAURA WILLIAMS, Plaintiffs-Appellants, v HOME-OWNERS INSURANCE COMPANY, Defendant-Appellee.

UNPUBLISHED December 20, 2011

No. 301158 Oakland Circuit Court LC No. 2008-092944-CK

Before: MURPHY, C.J., and JANSEN and OWENS, JJ. PER CURIAM. Plaintiffs Lawrence and Laura Williams, husband and wife, appeal as of right the trial court's order granting summary disposition in favor of defendant Home-Owners Insurance Company (HOIC) under MCR 2.116(C)(10). This case arose out of plaintiffs' discovery of mold growing in their basement and their attempt to have the full cost of repair and remediation measures covered under a mold endorsement in a homeowners insurance policy issued to plaintiffs by HOIC. Plaintiffs argued that a policy limit of $38,000 applied relative to the mold damage, whereas HOIC contended that, while there was some coverage for mold losses, the applicable policy limit was $5,000, which was an amount far less than the approximately $33,000 in expenses allegedly incurred by plaintiffs. We affirm. We will begin with a review of the pertinent provisions in the homeowners policy issued by HOIC. In Section I (Property Protection), under subsection 4 (Additional Coverages), a policy amendment in 2005 added the following "additional coverage:" Fungi, Wet Rot, Dry Rot and Bacteria (1) We will pay for accidental direct physical loss to covered property and fungi remediation cost as a result of fungi, wet rot, dry rot or bacteria if such loss follows prior accidental direct physical loss to covered property caused by any peril insured against other than fire or lightning. (2) We will pay no more than the least of the following for damage to covered property including fungi remediation cost:

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a) subject to (2)b) immediately below, we will pay no more than the limit of insurance shown in the Declarations under "Property Coverage Limitation for Fungi, Wet Rot, Dry Rot and Bacteria" for all accidental direct loss to covered property including fungi remediation cost.[1] b) when fungi, wet rot, dry rot or bacteria follows accidental direct physical loss to covered property resulting directly from covered water backup under 4. ADDITIONAL COVERAGES, p. Water Backup of Sewers or Drains, we will pay no more than the limit of insurance shown under 4. ADDITIONAL COVERAGES, p. Water Backup of Sewers or Drains for all accidental direct physical loss to covered property including fungi remediation cost. We shall refer to this provision hereafter as the "mold endorsement," and HOIC relied on subsection (2)(b) as the basis for limiting the extent of coverage. Next, in Section I (Property Protection), under subsection 4 (Additional Coverages), paragraph p (Water Backup of Sewers or Drains), which was referenced in subsection (2)(b) of the mold endorsement quoted above, it provides: We cover risk of accidental direct physical loss to covered property described under Coverage A

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Michigan Law