When is Mold Damage Covered by Insurance

Mold can be extremely dangerous to your personal health and the health of your home. After water damage, mold can develop within just 24 hours if proper preventative measures are taken. If left long enough, mold can cause serious structural damage to a building by breaking down walls, insulation, and carpeting, and in some cases, can cause structures to collapse. As far as insurance goes, some cases of mold are covered and some aren’t. Generally, home insurance companies will pay for mold damages only if it is a result of a sudden and accidental event that your policy covers. If you find it in your house, your first step should be contacting a mold remediation specialist to handle the problem as quickly as possible. Secondly, file an insurance claim with your home insurance provider. For more information on this process, view our Guide on First Steps to Take After Water Damage.

Does Home Insurance Cover Mold?

Insurance will cover mold damages if it is a direct result of something that is generally covered by home insurance. For example, a burst pipe, a broken water heater or water damage caused by extinguishing a fire. These events must be sudden or accidental; in other words, if there is a long-term, known issue that was never addressed and consequently caused mold damage, insurance will not cover it.
Most property insurance policies have limitations to the coverage for mold damage. They often will not cover fungus and will limit repair coverage to $5,000, depending on your insurance.
California Supreme Court has specifications about the fault of mold growth. Namely, if it is seen that the mold is a result of a previous mishandling of a household insurance claim. Most commonly, this is seen when an insurance company delays the repair of the house and delays in addressing the claim. As a result, the root issue contributes to mold growth and, thus, is the fault of the insurance company. With this in mind, it is crucial to file any water damage-related claims immediately to prevent any unnecessary litigation with insurance.

When Does Homeowners Insurance Not Cover Mold?

As aforementioned, home insurance policies operate under the parameters of unexpected and sudden accidents. If mold growth is due to poor upkeep of the property by the homeowner, the insurance company will not pay for repairs. Examples of poor upkeep could be poorly sealed doors and windows, a leaky faucet or lack of ventilation in a moist room.
Standard homeowners policies also won’t cover flooding. Check with your insurance company what they categorize as “flooding.” Generally, it refers to overflowing waterways that affect multiple properties. However, this definition may vary by region. If you live in an area at risk, consider getting flood insurance.

Flooding, water damage and mold are no small issues, and, if left untreated, can ruin the infrastructure of your home and damage your health. For water damage, flooding and mold emergencies or for general information, contact Mighty Dry.

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