Does your homeowner’s insurance cover damages due to mold? It’s no exaggeration to say that the answer to this question could mean the difference between a six figure settlement – and the cost of one home.
It’s likely that you are not far removed from personally knowing someone who has lost their home due to toxic mold growth. It’s a common tragedy; mold slowly made their home uninhabitable and the insurance company refuses to cover remediation and damages. Does this story sound familiar?
The short answer to whether or not your insurance policy covers mold is “probably not.” And this can be devastating to people who are oblivious to their insurance policy as well as the damages caused by toxic mold.
You need to look over the fine print on your policy and familiarize yourself with the details. If mold is mentioned in your policy, does the claim cover the damaged property due to mold or just the cost of remediation? Also, check for a limit to the amount covered (some policies only cover up to $5,000 in mold damages, well under the cost of a new home). Some policies refuse to cover your home if it has had previous leaks or if it the house was built with mold-inducing material like synthetic stucco.
Often if your policy covers flood damage, this only covers natural disasters like hurricanes. It probably doesn’t cover broken pipes, leaks, and high humidity which can be prevented or repaired early on with proper maintenance. In other words, if the mold damage was preventable, and not caused by an “Act of God,” then your flood insurance won’t cover it. And, even when it is covered, the policy may deduct prior mold problems and expect you to take reasonable measures to mitigate mold growth after the flood yourself as part of the claim.
The reason insurance companies usually give for not covering mold is that it can and should be taken care of with regular maintenance of the house. Unlike a fire which can destroy a house in minutes, mold grows little by little and can take years before it becomes a serious problem. But, if given enough time, mold can be just as destructive to a home as a fire and can be just as expensive to fix if your home needs to be torn down or gutted. Nobody enjoys paying this – especially when the damage is entirely preventable.
As a hard and fast rule, anything that you can take responsibility to prevent, you are responsible for. But regardless of your policy, you should always act accordingly to protect your home from rampant mold growth. It’s up to home owners to be responsible and carefully read their insurance policies and endorsements as well as reasonably maintain their home to control mold growth.
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