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Does Home Insurance Cover Mold?  • December 2021 Benzinga Insurance


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Home insurance is designed to help cover the cost of repairing your home in the event of a disaster. While mold isn’t at the top of your list of major disasters, it can be of concern. While not all types of mold are harmful, many types of mold can cause structural damage to your home and pose risks to you and your family’s health. And the risk of dangerous molds is greater if you live in an older house. But does home insurance cover mold?

It turns out that not all home insurance policies cover mold damage. Whether or not your policy covers mold depends on the cause of the mold and coverage is not guaranteed.

Learn more about home insurance and mold damage coverage with Benzinga’s guide.

Key points

  • Most home insurance policies offer limited coverage for mold removal and removal.
  • Your home insurance policy may cover mold growth if it is the result of a covered risk such as fire or backwater.
  • Your home insurance will not cover mold damage resulting from negligence, flooding (unless you have flood insurance) or pre-existing mold that was already in your home when you purchased your home. assurance.
  • Home insurance policies may place a limit on the total amount of coverage you can claim for mold damage.
  • Mold can be harmful to your health, so it’s important to take preventative measures to keep it out of your home.

Risks Covered and How Mold Insurance Works with Coverage

Mold damage is generally covered if the mold was caused by a covered risk. A covered risk is a situation that causes damage to your home and is covered by your insurance policy. Some of the most common covered risks include fires, electric strikes and storms.

The most common cause of mold is water entering your home where it shouldn’t, so it’s important to prove that the point of entry was caused by a covered risk. Here are some examples of common water damage risks covered by home insurance:

  • Water leakage due to device malfunction
  • Mold that grows after firefighters extinguish a fire with water

Initial damage vs resulting damage

Understanding the difference between initial and resulting damage is essential in determining if your mold issues are covered. The initial damage is the initiating incident that causes the damage, while the resulting damage is the damage caused as a consequence of the initial damage.

For example, when a tree falls on your house, it is considered initial damage. If the tree fell on a pipe and the bursting pipe caused your home to flood, the flooding is considered resulting damage because the pipes only opened because the tree fell on. your house.

Then, because of the flooding, your foundation now has mold. Mold is also considered a resulting damage. Some insurance policies cover the resulting damage, others do not. Some policies may cover the resulting damage to a certain extent, but not the entire damage.

Water damage is an extremely common resulting damage, and it is also one of the most common causes of mold. Mold may also be covered only if it is damage resulting from a risk covered by your policy. Make sure you understand when you will be covered before signing an insurance policy.

Coverage limits for mold removal and remediation

Home insurers put in place coverage limits to reduce their risk. Removing and repairing mold damage can cost up to $ 30,000. Most home insurance policies have a limit of up to $ 10,000 for mold damage, but this limit may be higher or lower depending on your policy.

When mold is typically covered by home insurance

Again, mold will generally be covered by home insurance if it is caused by a covered risk. It is also important that you know when mold damage will not be covered.

Below are some common dangers when mold can occur after water damage. Go over each scenario and be prepared for a conversation with your insurance provider before committing to a home insurance policy.

Does homeowners’ home insurance coverage rot from flooding or other natural disasters?

Whether mold is covered as a result of flooding or other natural disasters depends on the disaster and what is causing the mold. Most insurance policies do not cover flooding, so mold that forms as a result of outdoor flooding is unlikely to be covered.

In this case, you need flood insurance to cover mold resulting from flooding. However, if water damage from a hurricane destroying your roof and letting rain in causes mold to grow, you may be able to file an insurance claim.

Is mold covered as a result of neglect in the maintenance of the house?

Nothing will be covered by home insurance if you don’t maintain the property. This includes mold resulting from neglect in the maintenance of the house. If the home insurer thinks you could have done something to prevent the damage, they can deny your claim.

What if my home suffered mold damage before my coverage began?

Does home insurance cover mold if your home suffered mold damage before your coverage began or before you purchased a policy? In this case, the mold is considered a pre-existing condition.

Most insurance policies do not cover pre-existing conditions, so damage caused by mold will not be covered. However, some insurers offer coverage for pre-existing conditions, so it is important to ask how these conditions are treated before purchasing a new policy.

If mold is not properly removed, it can be extremely damaging to both the structural integrity of your home and the health of your family. The Centers for Disease Control and Prevention says exposure to moldy environments can cause a variety of negative health effects, including difficulty breathing and itchy eyes. These effects may be increased in men and women living with limitations of the immune system.

In addition to health issues, mold can also eat away at materials in your home, such as carpets, drywall, wallpaper, and ceiling tiles. This damage can cause ceilings, walls or floors to collapse. Mold also produces a distinct musty odor, which can become unusually strong and unpleasant if the mold gets worse.

How to prevent mold and have a claim denied

Taking steps to protect your home from mold growth can save you time, stress, and money down the road. Use these tips to prevent mold from growing in your home:

  • Fix leaks in your home’s plumbing and water system
  • Make sure your home is well ventilated with exhaust fans and ventilation systems that drain to the outside of your home
  • Inspect your roof and water systems regularly to make sure there are no water leaks
  • Use a dehumidifier to keep the humidity in your home below 50%

If you find mold in your home and need to file a claim, use these tips to reduce your chances of having your claim denied:

  • Carefully document damage using photos and videos
  • Extract your most recent maintenance records to prove to the insurer that mold growth is not due to neglected home maintenance
  • Follow up with your insurer after filing your claim to make sure you’ve provided all the necessary information

Keep your home safe

Does Home Insurance Cover Mold? As you can see, the answer is not easy. The specifics of mold coverage from each insurance provider vary. If you already have insurance, take a look at your policy terms to find out exactly when you’re covered for mold damage. If you don’t have a policy, you may want to purchase a policy that offers extensive mold coverage.

Mold is both dangerous and damaging. Do your research and be aware of your coverage before mold wreaks havoc in your home.

Frequently Asked Questions

Q. What can I do if my mold claim is denied?

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Q. What can I do if my mold claim is denied?

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Sarah horvath

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If your mold claim is denied, you can ask a licensed professional to provide a second opinion on the cause of the mold. If your insurance policy provides for an appeal process, you can appeal the denial. You can also contact your state’s insurance commissioner to see what else you can do to get the claim approved.

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Q. Do home inspectors check for mold damage during the buying and selling process?

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Q. Do home inspectors check for mold damage during the buying and selling process?

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Sarah horvath

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Home inspectors generally don’t look for mold specifically during the buying and selling process. However, most inspectors will check and mention any obvious spots of water damage or other possible signs of mold.

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Benzinga

Q. Do I have legal recourse if a seller does not disclose mold damage during the buying process?

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Q. Do I have legal recourse if a seller does not disclose mold damage during the buying process?

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Sarah horvath

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Q. Do I have legal recourse if a seller does not disclose mold damage during the buying process?

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