damaged home

My family and I own a single family residence home in Southern California. We bought the home in March of 2005 and began renting it in April of 2005 to the tenants who still presently reside there. I was given a call not too long ago and was informed there was a leak which had apparently been going on for some time and immediately called my insurance company who had sent out a team to assess the leak and the amount of damage caused.

Among their findings was mold, and a considerable amount from what I was told. When I went to the home to meet with the tenants on top of the leak and mold issue the carpets were trashed, windows broken, and walls broken. They threatened to sue me for poor living conditions and had also stated they would not pay for last month's rent and the demand to have their security deposit returned.

I am now in the process of having my home insurance adjustor advise me as to whether the damges will be covered due to the mold or not. If they take their case to court, will they win?

No--they should have reported that to you long ago; they may even be responsible for failing to do so.