Mold Damage
When mold gets out of control, the value of a property may plummet and residents may develop health problems. The longer mold is left to grow, the harder it is to remove. It is important to seek the services of a legal professional with experience in toxic mold cases before you contact your insurance company. To settle a claim successfully, investigations may be required, along with the testimony of engineering and medical experts.
Does Your Homeowners Insurance Policy Cover Mold Damage?
The cause of mold damage is important in determining whether your insurance policy will cover the cost of remediation and repair. Mold removal is excluded if the damage occurred slowly over time and/or is a result of the property owner’s failure to perform maintenance. Examples include mold in a bathroom because of a leaky shower that was never fixed, and roof damage that occurs because the homeowner neglected to repair loose or missing shingles.
Your insurance policy will more likely cover mold remediation if the cause is a peril, such as a sudden accident or natural disaster. Examples of covered perils include the following:
- Lightning
- Fire
- Heavy snow or ice dams on a roof
- Burst pipes or other accidental discharge of water
- Damage due to theft or vandalism
- Damage caused by a vehicle
For example, the policy may cover the cost of removing mold if it develops after a house fire that was extinguished when firefighters used water to put out the flames. Similarly, if mold starts growing after a water heater, washer, or dishwasher breaks, you may be covered. Ice dams occur when melting snow on a roof begins to freeze at the edge or in the gutters, creating a blockage that prevents water from draining properly. Ice dams can create mold problems inside the house, as well as in insulation, soffits, and wood structures that underpin the roof.
Excluded Perils
Flooding is considered an excluded peril. Most standard homeowners’ policies will not provide protection from water damage if it is due to flooding. Policyholders must purchase flood insurance at an additional cost to obtain coverage for damage caused by heavy rains, mudslides, hurricanes, tidal surges, and other types of flooding. Flood insurance may be mandatory if the property is in a flood hazard zone.
Your flood insurance policy should cover the cost of remediation for mold and mildew, as long as you inspected and properly maintained your property after the flood occurred. It is the homeowner’s responsibility to remove standing water and take measures to dry out the property as soon as it is safe to go back into the home. Otherwise, your insurance company may attempt to deny your mold damage claim.
However, many insurance policies that exclude flooding also cover water damage due to a “sudden and accidental” loss, such as a burst plumbing fixture. These policies deny coverage for fixing the broken fixture, but do cover the resulting water damage. It is important not to confuse “flooding,” which is excluded, with this form of loss, which is covered.
Other Exclusions
It may cost thousands of dollars to remediate mold damage. After a large increase in mold damage claims about 20 years ago, insurance companies began to revise their policies to add what is known as an absolute mold exclusion. This states that the policy does not apply to losses caused by or resulting from the growth of or exposure to mold, no matter what triggered it. In other words, insurance companies do not cover mold at all, even when it happens as a result of a covered peril.
Other insurance companies have drastically reduced the amount they will pay for mold damage. It may be possible to purchase additional mold coverage in the form of an optional rider; the cost of the rider will increase if you live in an area that is humid.
Standard policies will not cover mold that occurs due to a preventable water leak. If you neglect to fix a leaky faucet for weeks and it is hot and humid, you could end up with a mold problem that your insurance provider will deny. Also, if you do not use a dehumidifier in your basement and you live in a humid area, any resulting mold damage will not be covered by a standard insurance policy.
Filing a Claim for Mold Damage
Before filling a claim for mold damage, read your insurance policy carefully. The wording in your policy may be ambiguous, and a skilled attorney with an understanding of insurance law can explain the extent of your coverage. If you file a claim for damages caused by a sudden accident, such as a burst water pipe, fire, or lightning, your insurer may send a mold remediation company to dry out your house before mold has a chance to grow. This may prevent you from having to file a separate mold claim later.
It is important to keep track of all repairs and save all receipts if you are forced to file a separate mold claim later. Taking photos of the damage is also a good idea. It is possible that initial repairs may not be adequate to prevent future mold, and you may need to prove that the mold you discover later is a result of the covered peril and not your failure to fix a normal water leak. If you discover mold that you believe is due to a covered peril, do not clean the damaged area prior to filing another claim. Contact an attorney and photograph the damage yourself to ensure you have the representation and evidence you will need to support your claim.
