Is Mold Covered Under Insurance?

3/12/2019 (Permalink)

Does your homeowners policy cover mold remediation?

Mold remediation covered under insurance can alleviate much stress associated with the fungus. However, you must understand your insurance policy fully to receive compensation for mold damage. If you have mold growing somewhere in your home, you may not have to pay to remove and repair the damaged areas. However, not all instances of mold come as part of your policy. Learn when mold covered under insurance is partially or fully your responsibility below. Also, find out what to do about it if you do or do not have the proper coverage.

Does Homeowner's Insurance Cover Mold Damage?

Some homeowner’s insurance does cover mold. However, the mold covered under insurance must fall under covered peril. The language of your policy includes the conditions qualifying for a covered peril. As long as the specific thing causing the mold is a peril on your plan, you have coverage. Examples of peril include water damage resulting from accidents, or other factors. Some claims handle the removal of the mold, as well as reimburse you for any property damage.

Keep in mind, insurance companies limit the amount of coverage they offer so that additional coverage may cost a lot more. Again, it all depends on your insurance policy stipulations. There are also different types of claims to consider depending on your status as an owner with tenants or the owner or renting party.

First Party Coverage Claims

When you have mold in your home and make a claim with your insurance company, it’s known as a first-party property claim. You must be the policyholder to receive insurance coverage for the claim.

Third Party Coverage Claims

If you rent a home or apartment and your tenants file an insurance claim for mold, this falls under the third-party claim.

Tips for Dealing with Mold Damage

Whether insurance covers the mold in your home, you must address it as soon as possible. Allowing it to grow can lead to health problems, such as respiratory issues, throat irritation, and others. Mold thrives in moist areas. If your home has vulnerabilities to water leaks, you must address the incident quickly. Doing so can mitigate some of the health risks and property damage brought on by mold.

How to File a Claim for Mold

Each insurer has its own set of policies, but the general order to file a mold claim is as follows:

1. Call your insurance company and set up an appointment with an adjuster.
2. Try to dry the impacted area with fans, open windows, and other means of removing excess moisture. Avoid cleaning or removing mold because the adjuster must first assess the damage.
3. Take pictures of the damaged areas.
4. Talk to your agent about mold coverage limits.

In most cases, the homeowner must prove the mold is a result of a water damage claim resulting from burst pipes or some other event. Even if your policy covers your mold event, it may only cover a certain amount.

Without Proper Coverage

To get mold covered under insurance, you need qualifying circumstances. Your insurance company cannot remove or repair mold damage due to your lack of upkeep. For instance, failing to fix a minor leak that becomes a significant leak does not qualify you for mold coverage.

Other examples include mold resulting from:

• Long-term leaks
• Long-term moisture
• Construction defects

Tips for Handling Your Claim

Because insurance companies can make handling your mold problem a significant process, there are a few things to keep in mind before you make a claim.

• Never offer a guess as to the origins of the mold
• Do not agree with your insurance company if they suggest the mold has been around for a long time
• Allow the company to conduct a full investigation before signing off on any paperwork provided by the insurance company

Other Tips for Handling Mold

The best way to handle mold is to prevent its growth at the onset. You can limit mold growth by doing the following:

• Use air humidifiers and air conditioners to keep air moisture between 30 percent and 60 percent
• Do not place carpets or rugs in damp areas such as basements
• Fix small leaks immediately
• Inspect faucet fixtures and nozzles under sinks and toilets to check for leaks

There are several measures you can take to decrease the chances of mold growth. It is especially important in humid states where moisture collects easily in different parts of the home.

Do you need more information about dealing with mold damage or mold remediation? Our trained mold remediation specialists at SERVPRO offer 24-hour emergency services. Using the most advanced technology, our team keeps the mold from causing any further damage. Failure to act immediately can result in the denial of your claim, call us today at (208) 375-0300!