One of the most confusing policies homeowners insurance companies offer is mold coverage. Many policies contain vague wording stating that mold is excluded, except for in a few specific instances. This often leaves many homeowners wondering if their claims will be covered related to their mold issues. So in this blog post, we’ll go over when mold remediation is (or is not) covered by homeowners insurance, how much mold damage costs can be covered, and how to prevent mold as well.
WHEN IS MOLD REMEDIATION COVERED?
In most cases if you experience mold as a result of water damage, your policy will cover the removal. However, some policies may limit or exclude this protection. We’ll help you understand and guard against the causes of mold growth so that you can protect your home.
Let’s take a look at some examples of when homeowners insurance typically covers mold remediation:
- Your water heater ruptures and releases water that leads to mold
- There’s a fire that firefighters put out with water hoses, leading to mold in your home
- You have an appliance malfunction (like a dishwasher) that causes mold to grow
These are commonly accepted reasons homeowners insurance will cover mold remediation. And are what is commonly known as “covered peril.”
WHAT IS COVERED PERIL?
“Covered peril” is basically what insurance looks for when determining whether to cover your mold remediation costs or not.
The examples above are a few of those instances insurance is willing to cover. But the main thing is double-checking your policy, and seeing if your particular situation falls under what the insurance company considers “covered peril.” If you’re lucky, you’ll find yourself covered at least up to a certain financial point. However, if your situation doesn’t line up with their definition of covered peril, you may be in for a huge financial bill to shoulder.
HOW MUCH DOES INSURANCE PAY OUT FOR MOLD REMEDIATION?
The cost of mold damage and remediation can vary immensely. In general, you can expect the cost of mold damage to be anywhere from $5,000 to $30,000 for mold remediation service. However, most insurance companies will enact measures to reduce risk on their part to reduce pay out as much as possible. They likely have a limit on the total they have to pay for any mold damage. You’ll commonly find most homeowners insurance policies will cap out at about $1,000 to $10,000 for mold remediation service.
WHEN DOES INSURANCE REFUSE TO COVER MOLD REMEDIATION?
The biggest thing homeowners insurance will look for is if you’ve neglected basic maintenance or quick action that led to the mold problem. For example, if you have a water leak that you’ve ignored for days or weeks, that’ll be factored into whether remediation is covered or not. Additionally, if you’re affected by a regional flood (like a storm flood), you may also not be covered. You’ll likely need a separate flood policy to make sure your insurance covers this.
Here’s a few examples of when your homeowners insurance probably won’t cover your mold remediation:
- There’s an appliance that’s leaked for months or years (like a bathtub) that led to mold
- You live in a humid area but don’t use a dehumidifier, causing a mold infestation
- A storm or other outside problem caused a flood that damaged your home and created mold
Basically, if you fail to act promptly on water damage in your home immediately, or some external threat creates water damage, you probably won’t be able to get homeowners insurance to cover it.
WHAT’S THE BEST WAY TO MAKE SURE MOLD REMEDIATION IS COVERED?
The only way to make sure you’re always covered is by taking preventative measures. If you do things like regularly cleaning and ventilating water-prone areas, you can prevent most mold in the first place. You’ll also want to make sure to get a dehumidifier if humidity is a problem for you as well. Here’s a few tips to help you out:
- Install and maintain exhaust fans in your bathroom and kitchen
- Bleach-clean your bathrooms
- Double-check hoses for leaks on your fridge and dishwasher
- Clean out your gutters regularly
- Avoid adding carpet to damp places like bathrooms or basements
Essentially, if you can prove you do regular maintenance like these ones consistently, you’ll increase the chances homeowners insurance will actually cover the majority of any mold remediation costs you end up accruing.
WHAT SHOULD YOU DO IF YOU FIND MOLD AT HOME?
To make sure homeowners insurance covers your mold remediation, you should make sure to quickly act on it. The first thing you should do is NOT touch it, and take some photos of the mold damage. You’ll want to stay away from the affected areas, turn off any HVAC appliances to prevent it from blowing around your home, and call your insurance immediately.No touching, drying, disinfecting, or painting over the mold, either.
Doing any of these will put you or your family’s health at risk. You may even accidentally do something that breaches your homeowners insurance policy, which may lead them to finding a reason not to pay for mold remediation and put you in a financial bind.
CALL SAVE THE DAY RESTORATION TO DEAL WITH YOUR MOLD REMEDIATION
When a mold infestation strikes, it’s important that you work with damage restoration and reconstruction pros. Save The Day Restoration is licensed, bonded and insured, and will help you through the entire mold remediation process from start to finish.
For more information about Save the Day Restoration and how we can help you, contact us at (562) 246-9908 or email us at [email protected].