Is Mold Remediation Covered by Homeowner’s Insurance?September 27, 2017
Mold remediation is tricky. Depending on the cause it may be covered by homeowner’s insurance. Mold, on its own, is often not covered by homeowner’s insurance. Mold is naturally occurring, there is toxic mold, non-toxic mold, and much in between. The type of mold, amount of mold, and cause of mold can all affect whether or not mold is covered by your homeowner’s insurance.
Many times, the mold is caused by a buildup of water or moisture in an area, and that can give way to mold growth. If you happen to discover mold in an area, it is important to find where it is coming from. Is it a leaky pipe? Did a pipe burst? Or is there a leak in the roof that is causing the mold to grow. These things can be considered property damage. In cases like this, mold remediation can be covered because that is not technically the reason for the claim. Your claim in a pipe bursting or a hole in your roof and a side effect of that is the mold. Therefore, under that claim, mold would be part of the remediation process.
Other cases that may cause mold could be natural disasters. In many cases, floods cause a lot of mold in a home. When the water recedes, the carpet, walls, furniture, and everything in between are soaked with water and soon become covered in mold. In a case such as a flood, your homeowner’s insurance won’t typically cover the mold remediation, but separate flood insurance would. If you have flood insurance, mold remediation needed due to a flood would be covered under the flood claim.
Another option is adding additional mold coverage to your policy. Ask your insurance agent if you believe this is needed. The premiums can vary depending on where your home is located. In general, mold thrives in humidity and moisture, so a home in a humid climate, or near the water your premium may be higher than if your home was located inland or in a dryer climate.
Many policies have mold on their list of exceptions as reasons for remediation coverage. This is because, mold alone usually isn’t covered unless it is a side effect of something that is covered by your policy, such as water damage or pipe bursts, etc. For these reasons, it is important to do the best to prevent mold growth.
Preventing mold growth is simple. Keep areas that are prone to mold growth dry is a good start. Areas around tubs, sinks, your air conditioner, and water heater are prone to mold growth because of the excess moisture in the area. Making sure these areas are dry is a good step in preventing mold growth in the first place. Periodically check areas around appliances and other moisture-prone areas to ensure you won’t need to make a claim.
Prevention is key, but sometimes even when you do your best it can’t be prevented which is why it is important to know your policy. Contact your insurance provider and make sure you understand the limits of your coverage.