Insurance Policies and Mold Coverage
Mold is often a problem to find in our homes. Mold can cause a plethora of health problems, as well as damage the property it inhabits.
And yet all too often, homeowners find themselves without any mold remediation or water damage repair coverage due to not having an insurance policy. Many insurance companies force the homeowner to purchase built-in coverage for mold in the form of a policy.
Other insurance companies will sell only a policy covering water damage instead of mold damage. The following is a guide on how homeowner & commercial Insurance policies will cover most mold remediation and water damage to property
1. Mold and Mold Remediation
Mold remediators are trained to diagnose and remove mold from a home or business with the best possible results. Most insurance policies will cover the cost of mold remediation.
An insured contractor typically does this. The homeowner can be responsible for mold removal, but the insurance company will pay for all associated costs, including cleanup, and additional living expenses.
2. Mold and Mold Removal from Personal Property
The rules for mold removal from personal property that is a part of a homeowner’s policy will generally be the same as those for mold remediators. Insurance companies can require the homeowner to hire a certified contractor to do the work, and they will pay for all associated costs.
Related: Water Damage In Your Home
Some insurance companies may ask that the homeowner work with their preferred vendor when dealing with water or mold damage to receive full credit on all costs.
3. Mold and Mold Damage to Property
Policies will cover water and mold damage to carpeting and property that is not covered by any other policy. Homeowners should note that some insurance companies may not cover the costs associated with a home’s structure.
When dealing with the types of water and mold damage on residential property, some insurance companies will not pay for any costs that exceed the property’s value.
The homeowner should check with the insurance company to see what their policy covers.
When Is Mold Damage Not Covered?
The following is a list of scenarios when damage from a mold will not be covered:
1. If the property has been neglected and is in poor condition before water or mold damage occurs.
2. If the homeowner has not maintained their home or business, this lack of maintenance is the cause of the water or mold damage.
3. If any ignition sources can cause fires, such as old electrical wiring or flammable liquids in the house or business during a flood.
4. If the homeowner or business still needs to maintain their equipment while doing business, such as a regular janitorial cleaning schedule.
5. If the property has already been damaged by fire or other natural disasters, mold damage has occurred.
Summary – Insurance Policies and Mold Coverage Explained
The best way to gain the correct coverage for a home or business is to discuss your policy with a licensed insurance broker. Insurers will be able to give you the best possible solution for mold and water damage that is appropriate for your financial situation and current coverage.
Post remediation testing is always recommended to ensure that the mold has been eliminated from a home or business.