Is Mold Remediation Covered by Insurance?

For any home, mold is merely an unwanted guest; however, the real headache starts when you find out just how expensive it is to take care of it. Among most people, the big question in homeowners’ minds is, “Will insurance cover mold remediation?”.

Sometimes, an answer is not that simple, except with a yes or no. Whether it be mold remediation, or any other type of damage, if it was a result of poor maintenance, insurance companies can sometimes get pretty sticky about paying claims. 

Whether or not mold remediation is covered under your insurance policy depends on the kind of policy you have, where the mold comes from, and when the mold was actually discovered.

To understand fully whether insurance will help you cover the cost of mold remediation, let’s go in-depth with insurance policies, their coverage limits, and the kinds of mold scenarios that typically arise. 

Mold Remediation Understanding

What is Mold Remediation? 

Mold remediation means identifying mold, eliminating mold growth, and preventing mold growth in a building. Mold remediation differs from mold removal because remediation involves cleanup of mold but also includes measures to prevent mold from returning. It can be as minor as cleaning small patches of mold in damp areas, or a major effort to eradicate mold that has taken over a home due to water damage. 

Importance of Mold Remediation

Mold, the general-toxic types such as black mold-can lead to serious health issues, which include respiratory problems, allergies, and skin irritations. Apart from health risks, mold has been known to compromise the structure of a home, which then requires costly repair. 

This is why timely mold remediation plays a crucial role. If mold remediation were to be procrastinated upon, insurance claims could become much more cumbersome, since the insurer will then view the damage as one that you could have avoided. 

Signs You Need Mold Remediation 

Homeowners are often not aware of mold issues until it’s too late. The most common signs which may indicate mold remediation include visible mold growth, persistent musty odors, and water damage on walls and ceilings. Early detection is key and immediate action is called for, since delays in remediation may complicate your insurance claims and result in denials. 

Types of Insurance Policy That Covers Mold damage

Insurance policies differ in their mold remediation coverage. Generally speaking, regular homeowners insurance does have facets of mold coverage, which frequently depends on the source of the mold.

Homeowners Insurance and Mold Coverage 

Basic homeowners insurance usually covers mold remediation when the mold resulted directly from a “covered peril” such as accidental water damage due to a burst pipe overflow from appliances, or even fire. However, in cases where the mold is as a result of negligence or lousy maintenance, insurance companies are most likely not to cover the incident. 

Flood Insurance and Mold Coverage

Typically, it’s bought separately, but this type of insurance could likely cover mold remediation when it’s a result of the flood. The damage from the flood often introduces more moisture into a home than usual, thereby making it an ideal breeding ground for molds. But if you don’t have flood insurance, mold caused by flooding probably won’t be covered under your typical homeowner’s policy. 

Mold Damage and Insurance: The Fine Print As with most things in life, it comes down to the fine print within your insurance policy that will determine whether mold remediation is covered or not. Most policies include strict exclusions or limitations with regard to mold damage. Some insurers completely exempt mold, irrespective of the cause. Others may pay for mold, but with strict limits on the amount they will pay toward remediation. It is very important that you read your policy carefully and, if necessary, buy additional mold coverage or endorsements to ensure you’re adequately protected. 

Others may pay for mold, but with strict limits on the amount they will pay toward remediation. It is very important that you read your policy carefully and, if necessary, buy additional mold coverage or endorsements to ensure you’re adequately protected. 

When Does Homeowners Insurance Cover Mold Remediation? 

Homeowners’ insurance typically covers mold remediation when the mold is a result of a sudden and accidental incident associated with a ruptured pipe or malfunctioning appliance. In that case, the mold is considered secondary damage emanating from a covered event. Mold growth building up over time because of maintenance issues-long-term leak or humidity problems-is generally excluded from cover. 

Conditions That Impact Mold Coverage

What Determines Mold Coverage? 

The two factors that are most pivotal in determining whether your insurance covers mold remediation include the cause of the mold and the actual coverage stated in your insurance policy. If the mold is caused by a covered peril, such as sudden water damage, you may be covered. However, if it is a mold that develops over some period due to negligence, poor maintenance, or pre-existent conditions, chances are that the insurance company will reject your claim. 

Mold Caused by Sudden Accidents or Leaks 

Mold that results from sudden and accidental situations such as burst pipes or storm damage is recoverable under insurance. In such cases, the mold is considered consequential damage from the original incident; hence, insurers typically cover both claims for water and mold remediation. 

Long-term Mold Issues and Insurance Exclusions 

Mold that occurs long-term due to humidity issues, slow leaks, or poor ventilation is typically excluded under a basic home owner’s insurance policy. These sorts of mold issues often are considered by insurers to be nondischargeable, failing the “accidental” or “sudden” cause test. The insurance company can simply argue that it is up to the homeowner to take better care of his property and not allow mold to set in over a period of time. 

Common Scenarios Where Insurance Covers Mold 

Certain scenarios increase the likelihood of insurance coverage concerning mold remediation. These usually include cases where the mold is due to a sudden and accidental occurrence that your policy covers.

Mold Following Flood Damage

In case you have flood insurance, mold remediation following a flood is typically covered. In such a scenario, floodwaters surge into your home, bringing an excessive amount of moisture for mold to grow very fast if it’s not attended to promptly. Because it is the flood that constitutes a covered event, the mold damage that it will cause is also most likely to be covered. 

Burst Pipes Leading to Mold Growth

Probably the most common of all scenarios where insurance covers mold remediation is that of sudden and unexpected pipes bursting. Insurers view this as an unplanned event; therefore, any mold that comes up as a result of water damage due to the pipe will generally be liable under your policy. 

Mold Following Fire Damage

Oddly enough, fires can create mold because of the significant amount of water used to put out the fire. In these cases, mold remediation is often covered under a homeowners insurance policy for both fire and water damage. 

Conclusion

Mold remediation is an important process in order to take good care of your house and also your health; however, so far as the insurance coverage is concerned, it all depends upon the situations that have resulted in such mold growth. Knowing your policy, understanding when to file a claim, and proper maintenance of your property will all play a part. If you ever face mold remediation problems, close collaboration with the insurance provider can help you get out of this situation, along with taking some precautions.