Seeking Advice, Mold, Former Tenant Suing

[Wesley Weisberg]

What have other land lords done when former tenant sues for mold?? Have a bad situation where former tenant unjustly is suing for mold. Insurance does not cover, nor does umbrella coverage. Insurance attorney recommending settling but its hard to think of paying out when we know the charges are not truthful and former tenant is seeking insurance money. Insurance has no skin in it since they don't cover mold, only have duty to defend. 

Mold was caused by shallow groundwater/excessive rain last winter. Tenant did not do anything to help mitigate mold growth, actually ran a humidifier. Claiming landlord negligence and breach of habitability.  Time between mold identification to when remediation started was six days. No black mold, only common mold. Tenant moved out 3 days after discovery into air-bnb that was 3 times rent and expected us to pay. Was non-cooperative and delayed remediation due to not providing access (would not move items in house). Broke the lease. 

Property has been fully remediated and is re-rented. Post remediation mold inspection passed. 

Has anyone had this happen? I'm told these suites are very common. We are looking at all options and any suggestions. Most importantly, how do we protect from this happening again in the future?! Are there other insurance agencies that cover mold and groundwater damage? For sure, better tenant screening....