Is Mold Covered In Homeowners Insurance?

Home insurance concept , vector illustration

Like any other organism, mold needs food and water. It loves to eat wood, and that’s one reason why homes and other structures sustain mold damage. When it begins depleting its food source, damage occurs. Mold is easily identifies by how it looks and its odor.

Any type of water damage can result in mold. How the water gets into your home determines whether your homeowners insurance will cover the mold damage and remediation. All homeowners policies declare their covered perils along with their exclusions from coverage. An occurrence that’s typically covered in the context of water damage is a pipe burst. That’s because the actual pipe burst is the cause of the claim, as opposed to the mold itself. If a mold claim arises from Florida weather activity, like a hurricane or flood, it’s not likely to be covered without special coverage. You’ll want to review your policy or talk to your insurance representative to learn whether you have flood coverage.

Most basic homeowners insurers do not provide mold coverage within their covered risks, but that does not necessarily mean your claim will be denied. For instance, the pipe burst, which would be an accidental occurrence, which may lead to mold due to the moisture, should be covered, because the pipe burst is the claim reason, not the mold. However, a home showing neglected maintenance (unrepaired water leaks or exposure to humidity over a prolonged period of time) will be more likely to have a denied claim. You do need to be aware that mold coverage that is provided, due to accidents, is relatively low, unless an additional premium is paid. If you do have some mold damage, you’ll want to do whatever you can to mitigate your damages. You should also be vigilant about making periodic checks for possible water leaks in these common problem spots:

  • HVAC system lines & drains
  • Hoses for appliances
  • Tub, shower & sink seals
  • Any visible pipes
  • Weatherproofing of windows & doors
  • Wet spots in the attic & missing roofing material
  • Landscaping around your home

If you don’t have mold coverage, it’s recommended that you get it, particularly because mold thrives in Florida’s warm, humid climate. an average mold claim ranges between $15,000 and $30,000. Mold riders are available as an optional coverage, however they often come with a big price tag. Discuss your options with your insurance agent. Once you have all the information, you can weigh the risks against the costs for your needs.

As always, it’s important to know what your homeowners policy says in regards to your coverage. Take the time to familiarize yourself and ask questions about specific wording in regards to mold coverage, then you will be prepared should you have the unfortunate need to file a claim.

Sources: Does my homeowners insurance policy cover mold damage? Web Blog post. Living Prepared. Prepared Insurance. Home Insurance and Mold: Is Mold Covered? Web blog post. Houselogic by Realtors.