Is Mold Remediation Covered by Home Insurance
Mold growth in a home can be a nightmare for homeowners, posing risks to both health and property. Addressing the mold problem through professional remediation is essential, but costs can quickly mount up.
Discovering mold in your home can be alarming, and the cost of remediation can be significant. Many homeowners wonder if their home insurance policy covers mold remediation.
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Is Mold Remediation Covered by Home Insurance?
This often leads homeowners to wonder: does home insurance cover mold remediation? The answer is not always straightforward and depends on several factors, including the cause of the mold and the specifics of your insurance policy. Your home insurance policy may cover mold damage due to other situations, such as:
A broken water heater.
Water damage caused by extinguishing a fire.
A burst or frozen pipe.
What should I do if my home is damaged by mold?
Identify the source: Find the cause of the mold growth. This could be due to leaks, high humidity, or water damage from a broken pipe. Stopping the source helps prevent further damage.
Notify your insurance company: Contact your insurer immediately. Report the mold damage and provide details about how it occurred. This is critical to starting your claim process.
Document the damage: Take photos or videos of the areas affected by mold. Keep records of any correspondence with your insurance company and any receipts for expenses related to the damage.
Don’t remove mold yourself: Avoid self-remediation. Mold can pose health risks, so it’s safer to hire professionals. Your insurer may require an evaluation from a certified mold remediation specialist.
Get a professional evaluation: Hire a mold inspector or remediator. They can provide a detailed report, which may be necessary for your insurance claim.
Temporary repairs: Make temporary repairs to prevent further damage. Cover leaks with plastic sheeting or use dehumidifiers to reduce moisture. Keep receipts for materials used, as they may be reimbursed.
Understand your coverage: Review your insurance policy to understand the coverage limits for mold. Standard policies typically cover mold if it is due to a sudden, accidental event, such as a burst pipe. Coverage for mold due to long-term leaks is typically excluded.
Follow insurer instructions: Adhere to specific procedures provided by your insurance company. This may include using approved contractors or meeting certain deadlines for repairs.
Taking these steps can help you manage the situation effectively and increase the likelihood that your mold damage claim will be covered.
Mold Remediation and Its Costs
Mold remediation involves identifying and removing the mold, cleaning the affected areas, and addressing the source of moisture that caused the growth. Typical remediation steps include:
Inspection and assessment: identifying the type of mold and the extent of spread.
Containment: preventing mold spores from spreading during remediation.
Removal and cleanup: using specialized equipment to remove the mold.
Restoration: repairing any damage caused by the mold or the remediation process.
Mold remediation costs can range from $500 for minor issues to over $30,000 for severe infestations, depending on the degree of damage and the size of the property.
Read Also: How To Deal with Mold in HVAC?
When Does Home Insurance Cover Mold?
Mold removal is only covered when the source of the mold is covered by your home insurance policy, such as water damage. Standard policies protect you from water damage caused by sudden, accidental incidents, such as a burst pipe or an overflow from a malfunctioning air conditioning unit.
Examples of cases where mold is covered by home insurance:
- Your water heater breaks and releases water that causes black mold to grow on the surrounding walls.
- You suffer a fire in your home and mold develops after firefighters use water to put out the flames.
- Your dishwasher malfunctions and floods your kitchen, leading to mold at the base of your cabinets.
When does homeowners insurance not cover mold?
Home insurance policies are designed to cover sudden and accidental damage, so they typically don’t cover mold caused by neglect or lack of regular maintenance. This includes mold damage caused by:
- Poorly sealed doors or windows.
- A leaky faucet that you haven’t fixed.
- Lack of ventilation in a damp room, such as a bathroom.
Here are some other common causes of mold damage that a standard home insurance policy typically doesn’t cover.
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Sump Pump Failure and Water Backup Damage
Say your sump pump stops working and your basement is underwater, or a city sewer line backs up in your bathroom. Mold can easily grow in such situations, but standard home insurance policies typically don’t cover cleanup.
However, many insurers offer coverage for sump pumps and water backup as an optional add-on. (See more information below.)
Flood Damage
Standard homeowners policies typically exclude flooding. In the insurance industry, flooding refers to situations that tend to affect multiple properties, such as river overflow, high tides, or runoff from heavy rains. If you’re in a risk zone, consider purchasing flood insurance separately.
However, even if you have flood insurance, your policy may not cover mold damage. The nation’s largest flood insurance provider, the National Flood Insurance Program, covers mold damage only if you can’t access your home after a flood.
Coverage for mold damage varies by flood insurance policy. If you’re not sure what your policy includes, talk to your insurer.
Does Homeowners Insurance Cover Mold Damages?
Mold caused by your own negligence and lack of maintenance will likely not be covered by your home insurance company.
Over time, a small leak could cause mold to grow throughout the surrounding area. If you were to file a claim for the leak (and the resulting mold) weeks or even days after the leak became apparent, your insurance provider would likely deny coverage, because you did not act immediately.
Additionally, any mold damage resulting from a regional flood is not covered, since flooding is excluded from your home insurance. But, if you purchased flood insurance separately, that coverage would extend to mold damage.
Which Insurance Companies Cover Mold Damage
Many insurance companies offer coverage for mold damage, but it is often done so under specific conditions. It is important to understand the terms and conditions of your policy. Some companies may require additional endorsements for comprehensive mold coverage.
Top Insurance Companies That Provide Mold Coverage:
- Allstate
- American Family
- Progressive
- AAA
- Chubb
- Lighthouse Property Insurance
- Universal Property and Casualty Insurance Company
- Citizens Property Insurance Corporation
Coverage may typically be limited and only apply if the mold is a result of a covered peril, such as a burst pipe or water damage from fighting a fire.
How to Make a Successful Mold Insurance Claim
To successfully file a mold insurance claim, follow these steps:
- First, document the damage thoroughly. Take clear photos and videos of the mold and the affected area. Collect any repair receipts or related documents.
- Next, identify the cause of the mold. Mold is typically covered by insurance if it is caused by a covered peril, such as a burst pipe or leaky roof. Make sure the cause aligns with the events covered by your policy.
- Notify your insurance company immediately. The sooner you report the damage, the quicker you can begin the claim process. Call your insurance provider and provide them with initial details over the phone.
- Complete the claim form. This form will have sections that will ask for details about the extent of the damage, the cause, and your policy information. Be thorough and accurate in your answers.
- Consider hiring a professional mold inspector or assessor. Their report can provide crucial evidence for your claim, detailing the severity and cause of the mold.
- Keep communication records, such as emails, letters, and notes from phone conversations with your insurer. This can serve as proof of your timely and consistent follow-up.
- Follow up regularly with your insurance adjuster. Make sure any additional information or documentation required is provided promptly. Regular follow-up helps keep the claim process on track.
- Prepare for potential disputes. Be ready to negotiate and possibly provide additional evidence if your claim is initially denied or underpaid. Stay calm and persistent, and consider seeking professional assistance if necessary.
By adhering to these steps, you will maximize the chances of a successful mold insurance claim.
Conclusion
While mold remediation is not always covered by standard home insurance policies, it may be covered if the mold is a result of a covered peril. Understanding the details of your policy and taking preventative measures can help you manage mold problems effectively.