Is Mold Damage covered by insurance?

4/11/2018 (Permalink)

Mold on interior wall

Does your insurance cover mold?

Don’t wait until you have a household mold problem to ask does homeowners insurance cover mold removal. Find out in advance if your insurance will cover a problem if one arises. Mold removal can be extremely costly, so you don’t want to find out too late that you’re not covered.

Coverage varies from policy to policy and state to state, so the only way to know for sure if your policy will cover mold removal is to read your policy carefully or ask your agent. Some insurance policies contain exclusions specifically addressing mold removal. Some will cover mold removal only under certain circumstances. Some will pay for mold removal but not for mold testing, even though you may need to have your home tested for mold in order to find out if there is mold, that needs to be removed. PRV or Post Remediation Verification is also critical to confirm that the mold remediation process was successful.  The policies that do contain mold coverage, usually have a specific limit of insurance that will apply to mold.

Contact your insurance agent if you have any questions about your policy. If your policy doesn’t currently cover mold removal, find out if you can add that coverage to your policy, or if there is another insurance carrier that they can offer that covers mold.  It could save you thousands of dollars down the road.

When Mold Coverage Exists:

In cases where mold coverage exists, coverage needs to be triggered by another covered cause of loss.  Many different things can lead to the growth of mold in the home. If mold is caused from a sudden and accidental issue, like a burst pipe, which is covered, insurance is more likely to cover mold removal than if the mold is a result of an ongoing leak due to lack of maintenance

Here are some examples

Water Damage Following a Fire

Homeowners insurance usually covers fire damage. Unfortunately, sometimes the water used to put out a fire can lead to later mold problems. If mold results from a fire that is covered by your homeowners’ insurance, your insurance policy will probably cover the mold removal, as well.

Water Damage Following a Flood

Mold is a common occurrence after a home has had a water intrusion. Homeowners insurance does not cover flood, it probably will not cover mold that results from flooding. It may, however, cover mold following a covered water back up incident.

Water Damage from a Leaky Roof

Homeowners insurance usually won’t pay for water damage that results from a leaky roof, and most policies won’t cover mold damage that results from a leaky roof, either. However, if damage to the roof is caused by a fallen tree or limb, that damage usually will be covered by homeowners’ insurance. In that case, your insurance policy might also cover any resulting mold damage.

Also, most policies have a requirement that you take reasonable steps to mitigate damage.  Once you are aware of a water loss you have a duty to address the condition to protect from further damage.  If you are aware of otherwise covered water damage and fail to take any action, there could be coverage issue for the water damage as well as any resulting mold damage.

Mold Remediation

If you’ve got a mold problem the first step is finding out how bad the problem is and how much the source has contaminated the other areas in the building.  Be sure to have this inspection and testing done by a certified professional such as an ACAC Certified Indoor Environmentalist.  The initial testing results that the CIE produces will include a scope of remediation.  SERVPRO of Dubuque can take that Scope of Remediation and use it to give you a mold remediation estimate.

If you have trouble finding a certified mold inspector, we can provide a referral.  If a mold issue is identified and a remediation plan is in place, we recommend that you make sure the remediation contractor is properly trained, certified and has the proper environmental liability insurance in place to do this specialized work.  SERVPRO of Dubuque has all of these qualifications!