Mold Insurance Claims: is this covered?
Homeowners Insurance & Mold
Generally, mold removal is covered when the source of the mold is a peril already covered in your homeowners policy, such as water damage. Standard homeowners insurance policies protect you from water damage caused by sudden and accidental incidents, such as a burst pipe or an overflow resulting from a malfunctioning ice machine.
If the resulting moisture from a covered peril causes mold to develop, you have a valid claim for mold removal, as well as for the repair of any property permanently damaged by the mold, under your water damage coverage. It is recommended to consult an insurance attorney prior to filing a mold-related damage claim because Florida insurance companies tend to look for loopholes to justify minimizing or denying fair compensation for homeowner’s mold claims. They often try to discourage policyholders from filing mold damage claims with legal and industry-specific terminology that is purposefully difficult to understand.
Mold will not be covered if its caused by a maintenance issue such as failing to timely repair a leak or drainage issues. Also, mold damage caused by a flood is usually not covered by under a standard homeowners policy in Florida because often these policies exclude flood damage. However, if you purchased a separate flood insurance policy, that coverage would extend to any mold damage caused by a flood.
Identifying mold
Firs thing is first: is there mold in your home? Mold is not always obvious, and can often hide in plain sight. For example, mold can grow in between the grout of your bathroom tiles without you even noticing. If you see or feel a velvety or furry texture, then it is likely mold. If the pattern appears uniform, it could be a mold colony.
To quickly determine if an area does contain mold, ask yourself it makes sense for mold to grow in that area. If the area is often humid (a bathroom), or poorly ventilated (a closet), then it is likely that mold is growing there.
How much will insurance cover for mold?
The average mold damage can cost between $15,000 and $30,000 to remediate. In a standard insurance policy, there is typically a maximum limit of between $1,000 and $10,000 for mold remediation.
If you want to purchase broader mold coverage above that amount, it can usually be added as an optional rider.
How to file a claim when you have mold
In some cases, your mold claim will coincide with the original claim you file. For example, if a pipe burst and flooded your house, your insurance company may send a mold remediation team to properly dry your home to prevent mold from starting to grow in the first place.
This is ideal, since it will minimize damage and prevent you from paying a deductible for two separate claims — one for repairing the damage from the burst pipe, the other for the future mold removal.
In these situations, ask your insurance agent if the necessary mold remediation is totally covered by your claim. Also, keep meticulous records of all damaged areas and repairs in order to support potential future claims. In other cases, you might discover mold some time after water damage has occurred.
In these situations, you'll need to prove that the mold is resulting from the covered peril and not a new leak or lack of maintenance. Review our previous article for tips on processing your insurance claim.
As best as possible, you want to prove that this mold is related to your initial water damage claim. That way, you won't get stuck paying two separate deductibles. However, it is in your insurance company’s best interest to view the damage as a separate claim. Don’t be surprised if you encounter some resistance when trying to reopen a former claim.