WHITEFISH BAY, WI — Within weeks of moving in, Brian and Kaare Lotz learned there recently purchased home was uninhabitable and could be neither insured or sold because it was contaminated with toxic mold. The mold was so extensive that the Whitefish Bay building inspector ordered the house razed. Mold was not found in the inspection and was not disclosed by the former owner or real estate agent, Lotz said.

Atlantic Mutual canceled Lotz’s home insurance policy, citing increased risk because toxic mold had been found. That prompted the mortgage lender to call in the full amount of the loan, but the lender made a similar loan to Lotz’s business so he could keep the house. Atlantic Mutual eventually reinstated their policy after a compliant was filed with the state insurance commissioner.

(via Journal Sentinel)