Imagine finding black mold growing behind your kitchen sink, its spores making you sick, and its removal cost being prohibitively expensive.
Your claim could be denied depending on your insurance company and policy, so you need to fight hard for yourself by following these tips:
Coverage
Homeowners insurance protects against water damage caused by sudden and accidental disasters like burst pipes or flooding; it doesn’t, however, cover mold that arises as a result unless an additional rider or supplement coverage exists.
Imagine finding black mold behind your kitchen sink as a result of leakage from an unrepaired broken pipe that went undetected for weeks – this likely won’t be covered by your homeowners policy since the issue wasn’t caused by an sudden event but instead resulted from negligence.
A home warranty that includes water damage and mold remediation coverage is an ideal way to guard yourself from such situations, often costing just a bit more but potentially saving thousands over time by covering repair costs associated with plumbing problems and appliance malfunction.
If your homeowners insurance does include mold coverage, be sure to read and understand exactly what is covered and what isn’t. Also be prepared for pushback from insurers as mold claims can often be difficult to prove.
As evidence for your case, take photos and keep all records, including receipts from any efforts at mold prevention and cleaning. Furthermore, file your claim promptly so your insurance provider can investigate and offer you a quick payout.
If you can show that the mold growth was directly caused by negligence in the initial water damage incident, filing a reopening claim might save money from having to pay two separate deductibles.
If you are uncertain whether your current homeowners insurance provides mold coverage or not, consult a RamseyTrusted independent agent who can assist in identifying which policies offer mold coverage and find you the most affordable policies available to meet your needs.
Deductibles
Homeowners insurance does not cover everything when it comes to water damage and mold remediation, including deductible payments that must be met before insurers begin paying any part of your claim. If repair/remediation costs exceed this deductible amount, out of pocket expenses must be covered; fortunately though, many policies provide reimbursement if funds can be found from elsewhere – for instance emergency funds or 401(k).
Mold and humidity claims aren’t usually covered under standard homeowner policies; instead, you will likely require purchasing additional coverage through a policy rider that specifically addresses mold issues. Such coverage is typically available from specialty insurers offering mold coverage or home and property insurers that offer endorsements that address them.
Insurance riders offering first and third-party mold coverage often include both options. First-party coverage usually addresses costs related to cleanup efforts for mold infestation, such as cleaning materials, labor costs and equipment expenses; while third-party coverage addresses medical expenses related to illnesses caused by exposure. These expenses can provide tremendous support for those living with respiratory conditions or allergies caused by mold in their home environments.
Importantly, however, mold coverage will not cover claims related to negligence. For example, allowing a leak to go undetected for months resulting in mold growth is not covered. Also excluded would be scenarios in which a basement was flooded by stormwater but its owner failed to use a dehumidifier and thus allowed mold growth to take root.
If you intend to file a mold insurance claim, it’s essential that the claims process be taken seriously by both you and the adjuster. Be ready with proof such as pictures or any documentation from before the issue occurred; and avoid making repairs yourself; the adjuster needs time to examine all affected areas accurately so they can make an accurate determination whether it was caused by sudden events or neglect.
Exclusions
Your homeowner insurance may or may not cover mold depending on its source and severity. Mold growth is generally preventable by controlling humidity levels and providing sufficient ventilation, leading some insurers to exclude it under standard policies. Some providers do offer a rider for mold coverage which will remove this exclusion but this will likely increase premiums significantly.
If you discover water damage in your home, be sure to notify your insurance provider right away. They will send out an adjuster who can assess and determine whether mold has taken hold as a result of this incident. It’s also wise to document what has transpired by taking photos before any repairs are completed.
If the mold damage was the direct result of water damage, your insurer should cover it up to the original extent of damage. Furthermore, providing documentation of preventative steps you took such as air conditioning units, dehumidifiers, and exhaust fans in kitchens, basements and bathrooms in order to limit mold growth will be helpful in convincing an insurance adjuster of the claim that mold could not grow; otherwise they may question your claim that preventive steps had been taken and demand proof that measures had indeed been taken in order to limit further growth.
However, should mold grow six months after water damage occurred, your insurer is likely to cover it as it would likely be seen as an isolated incident rather than one caused by neglect or ongoing issues.
When you discover mold that is unrelated to water damage, two separate deductibles will likely need to be paid, equalling twice the original value of your property. This can be quite an expensive proposition when the mold causes health issues like bronchitis or respiratory illnesses – thus it would be prudent to consult a licensed mold remediation professional who can guide the claim process on your behalf.
Endorsements
Homeowners insurance typically provides mold coverage as a result of other covered perils, such as burst pipes or flooding from storms. Certain policies also offer separate mold coverage riders which include remediation up to an agreed upon limit as well as liability protection in case someone who visits your home gets sick due to being exposed to mold.
How homeowners insurance covers mold damage is a complex question, depending on both its cause and policy type. Environmental moisture damage – like that covered with green and black spots on a wall in your split-level mountain home’s basement – typically falls outside its coverage, as it’s considered wear and tear instead of an incident like flooding or leakage that requires coverage.
If the mold stems from a recent, covered incident, however, insurers will usually cover its removal. To protect yourself and save time when dealing with insurance claims for repairs to water damage in your home, having your home tested for mold quickly after discovering water damage can give a more accurate picture of its situation and ensure it was caused by that covered incident.
Additionally, having an endorsement called sewer backup coverage or water backup and sump pump overflow coverage on your policy could cover mold caused by these situations. Some policyholders have found that such coverage provides them with relief in cases involving plumbing fixtures like bathtubs, toilets or sinks that clog or overflow and cause the mold to form as well.
If your insurer does not cover mold associated with water incidents, consider hiring a licensed contractor or filing an appeal with them. Your state insurance commissioner may also offer guidance or support when approaching the matter with them. To avoid problems such as these altogether, try maintaining humidity between 30%-60% within your home; providing proper air ventilation; inspecting crawl spaces, laundry rooms and cabinetry beneath sinks regularly for any signs of dampness; regularly installing fans in kitchens and bathrooms and keeping humidity between 30%-60% to keep humidity levels in balance; regularly installing fans.
