In recent years, Texas has had one of the most dysfunctional homeowners insurance markets in the United States. To a large extent, this can be attributed to the combination of increased costs from mold claims coupled with various regulatory constraints. At the worst point (back in 2002), Farmers Insurance pulled out of the state, and State Farm adopted a policy of not taking on new business. Not surprisingly, this public policy crisis has resulted in Texas being able to claim (not proudly) the number 1 spot in the United States for having the most expensive homeowners insurance. Anyway, the homeowners insurance crisis set in motion various regulatory reforms, including the adoption of new policy forms which substantially limits mold coverage for most homeowners. We are now finally starting to see the fruit of this policy.