Discovering mold in your house can be both alarming and expensive. As a homeowner, you may be wondering if your insurance will cover the costs of mold removal and cleanup. The answer isn't straightforward, but knowing when mold is covered and when it's not can save you thousands of dollars. It can also help protect your family's health in the long run. In this blog, we discuss when the insurance covers the mold and when it won't, along with other aspects.
What's the Basic Rule for Mold Coverage?
Most homeowners insurance policies follow a simple principle when it comes to mold coverage: they will pay for mold damage only if it results from a "covered peril" mentioned in the policy. The key factor is that the damage causing the mold must be sudden and accidental.
For example, if your water heater bursts and floods your basement, your insurance will likely cover the resulting mold caused by prolonged water accumulation. However, insurance claims won't be covered if the mold results from negligence. For instance, a pipe leaking under the kitchen sink for months, resulting in water damage and mold, would not be covered under "covered peril."
When Does Mold Coverage Actually Apply?
Your homeowner's insurance covers mold damage in these given circumstances:
Broken water heaters that cause sudden flooding may result in mold damage that's covered by insurance. If your water heater bursts and causes damage, the cleanup and mold remediation are typically included.
Burst or frozen pipes are among the most common covered causes. When a pipe suddenly breaks and floods your home, any resulting mold growth is usually covered under the policy.
Fire-related water damage is another covered scenario. When a blaze in your home is extinguished with hose water, it may result in mold growth due to dampness, which is covered under insurance.
Appliance malfunctions like a washing machine that suddenly springs a leak can trigger black mold on the floor. The removal of which will be covered in the homeowner's policy. The key requirement, as mentioned, is that the damage must be sudden rather than gradual.
The common thread in all these situations is that the water damage happens quickly and unexpectedly, giving you little opportunity to prevent it.
Circumstances When Mold is Not Covered by Home Insurance?
Unfortunately, many mold situations fall outside the scope of typical homeowners insurance coverage. Understanding these exclusions can help you avoid costly surprises!
Gradual Leaks and Seepage: When water slowly seeps from sources like roofs or pipes over an extended period, it often creates conditions for mold development. Since this type of damage occurs gradually, insurance companies won't provide coverage. The same holds true for mold resulting from long-term plumbing leaks.
Poor Home Maintenance: This is another situation where your coverage claim may be denied. Mold resulting from inadequately sealed windows, lack of proper ventilation, or failure to address leaky faucet falls under homeowner negligence. Insurance companies view this as a maintenance issue that homeowners should address promptly.
Flood Damage: Standard homeowners policies exclude flooding. You won't have coverage unless you purchase a separate flood insurance policy from the National Flood Insurance Program (NFIP) or other private insurers.
Sump pump failures and sewer backups aren't covered under standard policies, though many insurers offer these as optional add-ons. Remember, you cannot add coverage after damage has already occurred. If your home is at risk for water issues, consider adding water backup coverage before problems arise.
Are There Any Limits to Mold Coverage?
Even when mold damage is covered, don't expect unlimited protection. Before filing a claim, consider your deductible carefully. The average cost of mold remediation in the United States is around $2,235. If your deductible is $2000, you would only receive $235 from your insurer, which may not be worth it since claims can raise your premiums.
If you have other damage besides mold or a significant infestation that will cost a lot more than your deductible to clean up, filing a claim is more likely to be worth it.
Certain policies don't include mold cleanup and testing once the damaged item is removed. In such a scenario, stay in touch with your agent, who will guide you regarding the options available.
What's the Best Way to Prevent Mold Issues?
The most effective way to protect yourself from mold-related costs is to prevent mold from growing.
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Regularly inspect pipes, faucets, and hoses for leaks and fix them immediately.
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Ensure proper ventilation in moisture-prone areas like bathrooms and kitchens. Install exhaust fans in those areas.
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Keep humidity level between 30 percent and 60 percent using dehumidifiers and air-conditioners.
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Avoid installing carpet in areas prone to moisture, such as basements and bathrooms.
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Ensure to seal windows and doors to avoid seepage, thereby keeping out moisture.
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Painting walls and ceilings with paint that contains mold inhibitors can also prevent mold issues.
Conclusion
Although home insurance can provide valuable protection against mold damage, coverage is far from guaranteed. The cause of the mold growth determines whether you will receive help from your insurer or face the costs alone.
Understanding these limitations and what falls out of "covered peril" helps you make informed decisions about prevention, additional coverage options, and when to file a claim. When in doubt, make sure to contact your insurance agent to discuss your specific policy and coverage options.
