Allstate Insurance Karl Boling & Assoc Denied water damage claim because they claim the damage happened over a long period of time buford, Georgia

I am a 40 yr claim advocate for policyholders "for the people" who has taught and written extensively claim training manuals for adjusters on the subject of water claims. 

 Water is the most trickiest peril under a homeowners policy known by all adjusters. If you reported the claim in a timely manner, within 2 weeks after discovering the loss, you would have coverage for the water damages to floors and walls.  Adjusters know that your  mold is usually excluded and takes up to 72 hours to grow. The adjuster is relying upon the water exclusion for water damages over a long period of time or beyond 14 days. The discovery date is important when a normal person should have known or found the water leaks and preserve the property from further loss. The emergency clean up to protect the property is a requirement under the contract, in exchange they will pay for the preservation costs you incurred. They owe that amount at least if you hired it out or did the clean up yourself you can bill them by the hour plus materials. 

Even though they dont owe for the mold, what it means is they simply don't owe for the remediation cost of any mold clean up, BUT do owe for the resulting or "ensuing damages " caused by water. If the mold is on the plywood or drywall and it also got wet and has water damage , they owe to tear out and replace the wet materials, they simply dont owe for any remediation costs associated with any mold removal , if any. In your case their may be no extra costs involved as the contractor will remove the mold with the wet drywall.  Sounds like a slick adjuster or an inexperienced adjuster just looking to deny claims and get bonus points for Christmas from the manager. The worst adjusters always seem to get the best raises and promotions, while the best adjusters who paid righteous claims never get promoted. I wonder why? 

Your best bet is to file a complaint with the Georgia Dept of Insurance/Consumer Complaints and they will set up a claim tracking number and investigate the facts. You may be able to do this on line. You should assert the adjustment process  for many issues such as improper denial, and an improper investigation was conducted. Insist most of the claim is covered even though mold may be excluded, that does not bar the "ensuing loss not excluded" under the policy from being covered. The ensuing loss is the emergency clean up by you or others, flooring and walls damages, tear out and removal costs and water damage treatment/anti bacterial of all wall and floor framing etc. which are covered property.