Homeowners may be surprised to learn that mold remediation is only covered by their homeowners insurance in certain events. We’ll discuss what is covered and how you can get coverage for the cost of mold remediation.
Have you spotted mold in the house you own? Are you looking to buy an older home that may be prone to mold, or are you unable to contact Flores & Pelaez-Prada PLLC, but curious as to what will happen with your current homeowners insurance coverage should you see microfungi growing in your house?
The bill for mold remediation can go well into the $20,000 to $30,000 range — so it’s good to know what your homeowners insurance will cover if mold makes itself at home in your house.
If you’re denied TSGLI for insurance, you have to contact a lawyer, and get the right guidance.Does Homeowners Insurance Cover Mold?
It depends. When it comes to determining coverage of mold remediation, your home insurance underwriters first want to know what caused the spores to invade your home.
Treatment of mold that is resulting damage from a covered peril, or an event that is covered by your homeowners insurance, is usually protected under an open peril homeowners insurance policy, according to the Insurance Information Institute (III).
Mold that results from neglect on the homeowner’s part is not covered 
under a home insurance policy, the III says. (For example, not addressing the months-old mold growing where your shower tile meets the wall, or not properly ventilating your home, are not mold infestations that your insurance company will pay to fix.)
Here are examples of situations where mold is likely to appear later:
- Your house catches on fire, and firefighters soak your walls while putting the flames out.
- Your laundry machine malfunctions, soaking the surrounding floor and crown moulding at the base of the wall.
- Your water heater bursts and you find mold on the floor and walls around it.
When water damages your home, be sure to report the damage to your insurers ASAP so that you aren’t penalized for failing to notify the company in a timely manner. The longer mold is left untreated, the worse it becomes, and the price to treat it increases. When you report mold, be sure to:
- Contact your insurance agency immediately.
- Contact a mold remediation company immediately.
- Open windows and run a dehumidifier to mitigate mold growth.
- Photograph all of the affected area and find any photos you have to show the area before the damage happened (proof of what it looked like before the perilous event).
- Gather as much evidence as possible to prove the mold is a result of the recent water damage.
Mold Coverage: The Finer Details
Claiming mold damage on your insurance policy means doing your homework in at least 3 ways, which are detailed here.
Not only do you want to know how much damage repair your policy will cover (called a “cap”), you’ll want to check with your homeowners insurance company if you’ll be responsible to pay two deductibles – one for regular damage and one for mold repair – if that is their mold policy.
Finally, you also need to have separate flood insurance if you don’t want to pay for mold remediation because a flood damaged your home.
1. Know how much coverage you have and if you can increase it. You should check your policy for the mold removal and remediation cap, or the amount of money that your insurance company is willing to pay for mold remediation. Because mold treatment can garner a hefty tab, insurance companies reduce their risk by building a cap into the policy. For example, policies will list a maximum limit of $1,000 to $10,000 per claim for mold removal.
Ask your insurer about endorsements to improve your mold coverage. They cost more, but they’re worth it if you’re in a humidity-prone environment.
Also, if you file a claim for mold coverage and it is denied, get a contractor to inspect your mold infestation and offer a second opinion to assist with your appeal of the denial. Contact your state insurance commissioner for help with filing a complaint about denial.
2. Ask your insurance company if you are going to pay two deductibles, one for mold and one for “regular” damage that brought on the mold. Prepare to separate the cost of mold removal versus the cost of general repair. For example: If it costs $2 square foot to remove damaged drywall for a covered event, but it costs $2.25 per square foot to remove moldy drywall, then the extra 25 cents could be applied to the mold coverage cap. The remaining $2 would be considered regular damage coverage and applied to the regular damage deductible.
3. Not all water damage is created equal. If your house is flooded in a storm or other natural event, mold remediation is not covered unless you have separate flood insurance that offers mold coverage. Homeowners insurance does not cover damage caused by floodwaters.
Keeping Mold At Bay
As you see, there’s a lot to consider in answering your question “Does homeowners insurance cover mold?” While mold can be a homeowner’s nightmare, you can preempt it by taking preventative measures:
- Inspect and replace appliances hoses for your washer, dishwasher and refrigerator every 3-5 years
- Shut off the main water valve when you leave the house for more than 24 hours (and consider installing water leak detectors)
- Keep your gutters clean
- Check for dampness in cabinetry, laundry rooms, closets and crawl spaces
- Check for accumulated water under house plants
- Only have hard flooring, not carpeting, in basements and bathrooms
- Install exhaust fans in bathrooms and kitchens
- Keep your home’s humidity between 30 and 60 percent using air conditioners and dehumidifiers
- Be on the lookout for fuzzy surfaces, musty smells and watermarks
If you do find mold growing in your home, your homeowners policy may help you take care of the cost of getting rid of it. The key is to preempt mold as much as possible with the home care tips listed above, and to know whether you have enough mold remediation coverage for your unique situation.