The last thing any homeowner wants to face is mold. It looks unpleasant, smells bad, and even has the possibility of causing health issues. What happens, however, if this happens in your house? Will your home insurance really cover everything? Let’s break it all down easily.
What is mold, and why does it occur?
Mold is a type of fungus, thriving under damp and wet conditions, on the walls and ceiling, and even within the carpets, and at times can even exist within your air conditioner. It grows fondly around the places where it may encounter moistened situations from a leakage or breaking of the pipes and flooding.
- A burst pipeleaking water into walls or floors.
- Water damagefrom storms or heavy rain.
- Poor ventilation in bathrooms or basements.
- Leaks around windows, roofs, or plumbing.
Mold can grow fast. When any area is wet for more than 24-48 hours, mold may begin to grow.
Is Mold Dangerous?
Not all mold is dangerous, but some kinds, like black mold, cause health problems. Black mold might result in respiratory issues, allergic reactions, or asthma attacks. That’s why mold remediation, also known as mold removal, is so important.
Will Home Insurance Cover Mold?
Most homeowners insurance policies only cover mold if it’s caused by a covered peril. A covered peril is an event listed in your insurance policy, such as a fire, burst pipe, or storm. For example:
- If a burst pipe floods your basement and mold grows, your insurance might cover the mold removal.
- If mold develops because of a sudden and accidental water leak, like your water heater breaking, your policy could cover it.
However, mold caused by neglect or maintenance issues is usually not covered. For instance:
- If your bathroom has poor ventilation and mold develops over time, insurance companies will likely not pay for mold remediation.
- If a slow plumbing leak is ignored for months, mold removal costs won’t be covered.
What Is “Sudden and Accidental”?
When trying to determine whether mold damage is insured, you may hear the terms “sudden and accidental.” For example, it means that the cause of your mold damage was sudden and could not have been prevented.
Following are examples:
- Covered:A pipe suddenly bursts and floods your kitchen, creating mold.
- Not covered:You discover a slow-drip leak under your kitchen sink, but you don’t do anything about it for months.
What Types of Insurance Cover Mold?
Standard Homeowners Insurance
Standard homeowners insurance typically covers mold if it is caused by a covered peril. It would probably not cover the removal of mold that was caused by flooding, poor maintenance, or high moisture levels.
Flood Insurance
Flooding is one of the leading causes of mold. A standard homeowners policy does not cover damage done by flooding. You have to obtain independent flood insurance. You can either purchase it from the National Flood Insurance Program (NFIP).
How to Know if Mold Is Covered by Your Insurance
Determine whether your insurance covers mold by looking at your insurance documents or contacting your insurance company. Look for the following words:
Covered peril: What events are covered in your policy?
Exclusions: Does your policy mention mold as excluded?
Limits: Some insurance policies pay only a limited amount for mold damage, such as $5,000.
How to Prevent Mold in Your Home
Since insurance may not cover mold, it is always advisable to take preventive measures.
Fix leaks promptly: Never wait for a burst pipe or a roof leak to fix it.
Ventilate: Use fans in bathrooms and kitchens at all times.
Control humidity: Ensure the humidity in your house is kept below 50%.
Clean and dry wet areas: Dry any area within 24-48 hours after a spill or flood.
Check your house: Always look for leaks around windows, doors, and the air conditioning unit.
What to Do When You Find Mold
Remove the source: Examples include stopping water sources causing water damage and fixing leakages.
For minor mold infestation: For small areas, just clean with soap and water or with a store-bought cleaner.
Call professionals: Larger mold infestation calls for the experts. Hire a professional for mold remediation.
File an insurance claim: If the damage was due to a covered peril, reach out to your insurance company.
How to Make a Claim for Mold Damage
Document the damage: Photograph or video the mold and what caused the damage, like a burst pipe.
Reach out to your insurance company: Explain the situation and see if it is covered under the policy.
Have an adjuster hired: The insurance company will often send out an adjuster to inspect the damage.
Get quotes: Have the professionals estimate the removal cost of mold.
File your claim: All the necessary paperwork should be submitted to the insurance company.
How Much Does Mold Removal Cost?
The cost of mold removal varies with the size of the problem:
Small areas: $500 to $1,500
Large areas: $2,000 to $6,000 or more
If your insurance policy covers mold, it can save you thousands of dollars. However, some policies have limits on how much they will pay for mold remediation.
Mold in Common Situations
Burst Pipe
A ruptured pipe in your home might overflow and result in mold formation, which your homeowners insurance might cover since it just happened and is an accident.
Air Condition Unit
Your air conditioner breakdown might leak and this will result in water damage with the product of mold. This could be covered according to your policy. It should not be allowed to happen with a routine maintenance.
Black Mold
Dealing with black mold can be expensive. Some insurance providers may cover it if this is caused by a covered cause, but not if due to neglect or long-term moisture.
Mold is a serious issue that can be expensive to fix. Whether or not your home insurance will cover mold depends on the cause. If the mold results from a covered peril, like a burst pipe or sudden water damage, you’re more likely to be covered. However, mold caused by neglect, maintenance issues, or flooding usually isn’t included without additional policies like the National Flood Insurance Program.
The best way not to have mold problems is by way of prevention. Keep your house dry, fix leaks rapidly, and maintain proper ventilation. In case you actually get some mold, act in haste and check with the insurance company to see if all those costs are covered.
Learning how your insurance covers mold infestation can help you prevent dangerous situations at home and ensure everyone’s safety.
Understanding the Necessity of Communication to Your Insurer
Proactively communicating with your insurance company is a critical step in navigating potential mold issues. Knowing the specific details of your insurance coverage and maintaining a clear line of dialogue will ensure you’re prepared in case mold-related problems arise.
Stay informed, stay protected, and take the necessary precautions to keep mold at bay.