Mold damage being displayed in house

If there’s one thing we know about mold, it’s that the fungus can be a nightmare for homeowners. When you think you’ve dealt with mold, it finds a way to come back. When left untreated, mold will spread around a room and further into the home. In fact, it can also get into the walls and cause all sorts of problems for the structure of a building.

Mold ruins the aesthetic of a house, it causes damage to the structure, and it can also cause health problems; nobody wants to be breathing in mold spores in their own home. Although they don’t normally cause their own health problems, they will irritate existing ones. For example, those with asthma may have a bout of coughing or problems with breathing.

Is Mold Damage Covered?

If you were to pull out your policy documents now, we almost guarantee that you would end up confused regarding mold. In our experience, insurance providers tend to be somewhat vague on this topic. Will your claim be successful, or will the provider simply reject it outright?

Generally speaking, mold WILL NOT be covered under property insurance (sorry!). However, there’s an exception; when the mold is a direct result of another coverable loss. For example, mold that stemmed from water damage.

When Mold IS Covered

If the mold is a by-product of another loss that is covered by the insurer, you should receive money for the remediation efforts. If your toilet started to back up or you experienced a sudden burst pipe, some of the moisture may cause mold. In this case, the insurance company should not only provide for mold removal but for the repair of damaged items too.

Examples include;

  • Black mold experienced after a ruptured water heater.
  • Mold located at the bottom of storage cupboards after the kitchen experienced flooding (due to a malfunctioning dishwasher).
  • The development of mold after a house fire was extinguished with water.

At this point, we should note that there may be limits to what you receive. Even if the mold is caused by a coverable loss, insurance companies are still well aware that mold remediation can cost tens of thousands. Therefore, depending on the policy, your provider may only provide the first $1,000 or $10,000.

If your state is considered a mold-prone state, you’ll find optional riders which can be added to your property policy for a small fee. Effectively, this will increase your coverage in the event of mold.

When Mold ISN’T Covered

On the other hand, you won’t receive a payment if the mold has been caused naturally or through your own lack of maintenance. If there was a small leak and you decided not to fix it, you won’t be able to then claim for mold damage.

Furthermore, flooding isn’t a coverable loss which means that the resulting mold also won’t be covered. If you have flood insurance, however, this should extend in much the same way as we’ve seen throughout this guide.

Filing a Claim

If you think you’re entitled to a payment for mold damage, contact the insurance company and they will send an adjuster to assess the damage. Although you aren’t advised to clean or remove anything, you can open windows to improve ventilation and halt growth.

Let’s say the insurance company offer less than you expected or deny your claim, this is the time to contact us at Cannella Legal. We have the tools, experience, knowledge, and determination to help get the money you deserve either through a settlement or lawsuit.