Insurance coverage and mold damage

There are a lot of misconceptions and confusion that surround insurance claims for mold damage. There are some insurance companies that cover mold damage and some that will not. Many insurance companies specifically will exclude mold from their homeowner’s policies while other insurance companies will sell you a rider policy that covers mold damage. What is even more confusing is that certain states such as Illinois will specify the conditions in which mold damage is covered.

Mold is not a new problem for homeowners. It has been around for generations. Mold can be found everywhere and has become even more of a health hazard in recent years. The public has become even more aware of mold and the number of claims for mold damages has increased dramatically. Insurance companies have begun to revisit past insurance claims for mold damage most often excluding mold coverage or limiting the coverage.

However, insurance companies will not pay for mold damage if it is related to the lack of proper home maintenance. For example, if your home has water that is seeping into your basement because of poor drainage your homeowners insurance will pay for the claim. However, if you have mold damage in your bathroom due to poor ventilation, your claim may not be covered. Homeowners insurance is designed to protect your home from unexpected or sudden losses and does not serve as a substitute for poor or lack of routine maintenance.

If your house suffers from mold damage due to flooding while that is considered a sudden and unexpected loss, most homeowners policies do not cover mold damage that occurs from flooding unless you have a national flood insurance policy. Mold removal steps that are taken after a flood is covered by national flood insurance policies with reasonable limits. If you are engaging in any type of remodeling in your home, such as bathroom or kitchen remodeling, and encounter mold issues that were previously unseen, it may warrant a telephone call to your insurance provider to see if there is any compensation.

If you have mold damage that occurs as the result of water damage from burst pipes certain insurance companies will cover that claim. However, there is an even larger number of insurance companies that will not cover that claim. Most insurance companies today will exclude or limit coverage for mold damage that occurs from water loss. Be sure to read the fine print of your insurance policy include all endorsements to be sure exactly what type of mold damage claims are covered. You will also want to check out what mold damage claims are covered even if they result from a covered loss such as burst pipes.

Some of the typical exclusions for mold damage are for all related mold damages, all mold related damages that have an option to buy endorsements, limited coverage for mold damage depending on the circumstances, limitations on mold removal expenses such as for clean up but not for removal.

If you have difficulty understanding your homeowner’s insurance policy pertaining to mold damage, consult your insurance agent. They will guide you through your policy and define exactly what is covered. There are certain regions where mold damage is more common and your insurance agent will suggest what steps to take to ensure you are covered.