Home Insurance And Mold
Normally, home insurance policies exclude coverage of mold damages that are caused by fungi or bacteria. However, this doesnt mean that claims for mold damages will be entirely denied. Insurance companies usually avoid paying homeowners for mold damages that are the result of carelessness. They expect homeowners to maintain their house and pay attention to damage when it starts to appear.
Insurance is only provided in the case where a covered peril is the root cause of the mold. This can be best explained through an example. Say there is mold due to a pipe bursting, which is covered by your insurance. The mold damage will then be covered by the insurance company. This is because the mold has been created due to the pipe bursting. Had the mold been formed due to negligence on the owners part, a claim could not have been made.
Most insurance companies view water damage and mold damage in the same way. Homeowners make claims under the water damage policy and get coverage for mold damage as well.
In the 2000s, when excessive mold claims started to pour in, limitations on mold coverage were adopted. The amount of coverage provided for mold damage had a maximum limit, which usually fell between $1000 to $10,000.
Policies were also introduced which didnt cover mold damages resulting from floods. Separate flood insurance was introduced to deal with this issue.
How To Make A Mold Insurance Claim
If you find mold, dont touch it. Document it with photos and reach out to your homeowners insurance provider.
The next step would be to review your homeowners insurance policy to see if it covers mold damage. You can also contact your insurance company about the coverage.
If you file a home insurance claim, your insurance agent or an adjuster will contact you and inspect the damage as part of the insurance claims process.
If your mold damage claim is covered, ensure only the applicable charges go toward the mold remediation limit. For example, if your laminate floor costs $2 per square foot to replace without mold and $2.50 per square foot to remove with mold, only $.50 per square foot should be charged to your mold limit. The rest falls under your dwelling coverage limit.
Don’t be intimidated by the home insurance company, either. Most times, mold remediation companies have the expertise to assist in filing your claim, so bring one on board to help.
“If the mold damage is covered, can handle all the aspects of the remediation and submit billing to the carrier on behalf of the policyholder, Ragsdale says. We can help a policyholder through the claims process but have no authority over what is covered or not.”
How To Avoid Having A Mold Damage Claim Denied
There are several things you can do to prevent mold and/or improve the odds of having your claim approved if you incur mold damage.
On the prevention side, you can:
- Install dehumidifiers in areas that are prone to dampness
- Regularly check plumbing pipes and fittings to look for leaks
- Adequately ventilate bathrooms, laundry rooms, kitchens, and other areas of your home where mold may have an opportunity to grow
- Keep gutters clean to prevent the formation of ice dams in winter, which can lead to leaks
- Regularly inspect your roofand around windows and doorsand caulk cracks that could allow water to leak in
- Properly insulate interior and exterior pipes in winter to avoid breakages or leaks
- Routinely check appliances and hot water heaters for signs of leaks
If you have to file a claim for mold damage:
- Properly document the damage with photos and/or video
- Provide up-to-date maintenance records if you have them
- Follow any and all instructions the insurance company gives you to process the claim
- Contract approved mold removal companies to clean up the damage
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Flooding And Acts Of Mother Nature
In cases where mold results from water damage brought on by storm surges or flood waters remediation is not typically covered in a standard homeowners insurance policy. Flood damage is typically covered in a separate flood insurance policy.
In the case that you do have a flood insurance policy and your home floods, your policy still likely does not cover mold removal or remediation in all cases. An additional mold rider may be worth looking into. Check with your insurance carrier for more information.
For Example: Flood insurance from the National Flood Insurance Program will not cover damage from mold, except for very rare circumstances, such as when floodwaters remain in the area and prevent you from inspecting and maintaining the home, or when an authorized official bans entrance to the area.
Example Scenarios When Mold Damage May Not Be Covered
You probably wont be covered if mold forms in your home due to1, 2:
- A poorly ventilated bathroom or kitchen causing an increase in humidity
- Improper sealing around the base of a toilet or shower, allowing water to seep through the floor
- Dirty or broken roof gutters forcing water to flow over other parts of the house
If your insurance deems that your mold damage was preventable, then you may end up paying entirely out of pocket to make your repairs.
Even when mold damage is beyond your control, your insurance may still not provide support. Flooding, for instance, isnt usually covered in a standard homeowners insurance policy and often requires having flood insurance.2 If youre in a high-risk area, this could be a worthwhile purchase or it may even be required by law.4
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How To Control Mold
Although mold can be the result of circumstances beyond your control sometimes mold growth can be prevented.
- Check for water leaks/spills and fix them right away
- Make sure rainwater flows away from your home
- Keep your gutters clean and functional
- Watch for condensation on your walls and windowsyou may need to turn down or shut off your humidifier if you notice increased moisture
- Consider running a dehumidifier in your basement or other damp areas of your home
- Perform routine maintenance on all appliances that use water
- Avoid carpet in wet areas like basements and bathrooms
Whether mold damage is covered by homeowners insurance often comes down to the source of the moisture that caused it. Take some time to review the language of your policy, especially as it pertains to water damage. Look for mold exclusions or limitations.
If you have questions about your policy and want to know how your policy will cover mold, talk to a local Bearingstar agent today. Our agents live in neighborhoods like yours and are uniquely qualified to determine what kind of insurance you need to cover any damage or losses you might suffer.
Treating And Removing Mold
Whether homeowners insurance covers it or not, the best way to treat and remove mold is to leave the task to professionals. If you’re on the hook to pay for the job, look into applying for a or a low-interest personal loan. And because mold can lead to serious health problems, consider the pros and cons of a home equity loan to come up with the funds to make your home safe.
So, does home insurance cover mold? The answer is complicated. It depends on the specific insurance company and the precise wording of your policy.
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Examples Of Situations When Mold Damage May Be Covered2 3
Here are some scenarios in which you would be covered for resulting mold damage2, 3:
- Malfunctioning appliance, such as a washer or dishwasher, causing a leak
- Burst or frozen pipe
- Broken water heater
- Water damage caused from extinguishing a fire
Its important to note that for situations such as these, the mold is resulting damage not initial damage. That means your insurance can help you with mold remediation and repairing your floors or walls, but it will probably not replace a broken appliance. Your policy might also have a cap on the amount it pays toward mold removal, which may not cover all of the mold damage.2
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Possible Signs Of Mold
Odors: Inside your home, mold will normally have a musty, damp smell. If you detect a musty odor and suspect mold could be growing inside the walls of your home, consider contacting a mold remediation professional to conduct an inspection.
Health issues: Mold can cause an allergic reaction. Symptoms include a runny nose, itchy eyes, or nasal congestion and may be worse when you’re at home.
Visible mold: Mold growth can appear in any color and while only a small amount may be visible, it may indicate a larger, hidden issue. If you’re purchasing a home, these issues may be spotted during a home inspection and should be addressed with the seller.
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What Is Mold Insurance Or Mold Liability Coverage
Mold insurance is the coverage for damage due to mold, which is included in an insurance policy. Environmental insurance, General Liability, and Property policies sometimes include coverage of mold. If these policies do not include mold insurance coverage, then, an insurance coverage could be made available by purchasing an endorsement to the forms.
When Is Mold Damage And Removal Covered By Homeowners Insurance
Insurance carriers are very clear about whether homeowners insurance covers mold damage and removal. Some policies do not cover mold at all. Say youre located in an area that regularly floods or live near the ocean. Mold from water damage or humidity is such a predictable occurrence that insurers dont want to pay for its removal.
When an insurance company does cover mold, it is only under certain conditions. In a nutshell, it all comes down to what caused the mold and whether the thing that led to mold is covered under your policy.
Lets say your house caught on fire and the fire department sprayed tons of water putting it out. However, because the property remained damp after the fire department left, there is mold in the basement and main house. Does homeowners insurance cover mold? In this case, because fire damage is covered, so is mold resulting from the fire.
Heres a sample of situations in which mold is likely to be covered:
- A leaking pipe that you have not attempted to repair
- Any type of flooding, unless you carry flood insurance
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When Purchasing A New Home
Before taking ownership of a new property, it is a good idea to have it tested for mold during the whole home inspection process. Mold growth can be hidden in plain sight during an open house, so even if a home seems to not have mold, a thorough inspection of all surfaces, especially in basements and garages, is recommended.
Making A Successful Mold Insurance Claim
Les, a former managing editor, insurance, at QuinStreet, has more than 20 years of experience in journalism. In his career, he has covered everything from health insurance to presidential politics.Read full bio > >
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Most homeowners dont think about mold until its already become a problem. And then you may be surprised what is and isnt covered by your homeowners insurance.
Lloyd Crosthwait, an engineer at Continental Machinery Company in Dallas, a disaster-recovery firm, has seen mold growing in many of his clients homes.
Mold spores are everywhere in nature so that challenge is always there. Ive seen problems where people have mold growing in closets just because theyre living near a coastline or other humid areas, said Crosthwait.
Key Takeaways
As a public adjuster, Matthew Blumkin, a principal and public adjuster at the Greenspan Co./Adjusters International in Encino, California, has seen numerous home insurance claims relating to mold.
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Mold Caused By Sewer Backup
Water damage caused by a sewer backup is not a covered peril on a standard homeowners policy. However, most property insurers will offer an optional sewer backup as an endorsement. If you have purchased the sewer backup add-on, your policy may extend coverage to mold resulting from the sewer backup through the mitigation process, but generally, mold caused by a sewer backup is not covered. In this case, you may want to inquire about a separate mold rider or mold policy.
When Does Homeowners Insurance Cover Mold Remediation
Within your homeowners insurance policy you will find a detailed list of covered perils. Covered perils are simply specific instances of damage to your home/property for which a claim can be filed. Every policy is different so its important to understand what exactly is covered by your insurance carrier and policy. Mold is caused by excess moisture which can be attributed to water damage or high humidity, lets take a look at some common examples in which a homeowners policy would likely cover mold removal.
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Is Mold Removal Covered By Homeowners Insurance
Ryker Bingham | Oct 20, 2021
The mold that took over your home wasnt visible as it was growing behind a wall, but the odorous stench and breathing issues youve had since are certainly attributed to it. Once the wall was deconstructed, you realized your mold issue was more serious than you thought. Ismold remediation covered by insurance?
If the mold was caused by a named peril under your homeowners insurance policy, then your insurance could pay for mold removal. Should the mold be attributed to any other source, youd have to pay for remediation yourself.
Before you call your insurance representative, you might want to keep reading. This article will provide important information on how your homeowners insurance policy could help cover mold remediation & whether it’s safe to remove mold yourself.
How To Prevent Mold In Your Home
Mold is more than a household headache it can cause serious health problems, too. According to the Centers for Disease Control and Prevention, people with allergies, diseases that weaken the immune system and respiratory diseases face the highest mold-related health risks.
Its almost impossible to keep your home mold-free all the time, but with proper maintenance, you can prevent mold from getting out of hand. Often, you can smell the musty odor of mold before you see it or feel a slimy substance when you touch surfaces. Dry mold can grow in linens and pillows and form around dressers, shelves and heating and cooling vents. To prevent mold, regularly follow a few lifestyle and maintenance tips:
- Dry spills immediately
- Regularly check pipes and appliance hoses for leaks and replace hoses before they spring a leak if possible
- Clean surfaces like bathroom tile and ceramic floors with mold-killing products, like bleach
- Install exhaust fans in your kitchen and bathrooms
- Maintain a humidity level of 30% to 60% inside your home
- Paint walls and ceilings with paint that contains mold inhibitors
- Remove carpets from damp areas, like bathrooms and basements
- Dont allow water to accumulate in water reservoirs of house plants
- Inspect your roof and attic for water seepage and promptly make repairs as necessary
- Clean debris from gutters to ensure proper water drainage
- Seal windows and doors to prevent seepage and keep out moisture
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Finding Coverage For Mold
If you live in an area prone to mildew or high humidity, you may need more routine maintenance in order to fend off moisture and mold. Even if you meticulously clean your property, mold could go unnoticed and cause extensive damage before you spot it. There may be some coverage options.
Policies that include mold rememdiation. Some homeowners insurance policies, such as policies for high-value homes, will give you more coverage automatically.
For example, Chubb can provide coverage for mold remediation expenses. This includes testing indoor air quality and surfaces, developing a mold remediation plan, and implementing the plan, such as removing, containing and disposing of the mold.
Mold insurance riders. Some insurers offer a mold-damage rider or endorsement that you can add to your policy. This rider removes a policys exclusion for mold.
Keep in mind, mold damage riders might not be offered in your state or by your insurer.
How Do I Prevent Mold
While mold grows where theres moisture, it is also preventable. To prevent mold growth in your home:
- Keep humidity levels low. Use an air conditioner or dehumidifier to maintain a low level of moisture in the air. To check humidity levels throughout the day, you can purchase a meter from a home improvement store.
- Use fans or vents. Let air flow freely throughout your home and turn on or install fans that vent to the outside of your home for kitchens and bathrooms, as well as dryer vents.
- Fix any leaks in your roof, walls, or plumbing to ensure mold doesnt grow.
- Clean with mold-killing products, especially in bathrooms.
- Add mold inhibitors to wall paint before painting rooms that are high in humidity or moisture, like bathrooms. Many paint and home improvement stores can add an inhibitor to the paint for you.
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