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Does Your Homeowners Insurance Cover Mold?

Are you among the many people who thought your homeowners insurance covered mold only to be disappointed?

Mold presents a serious threat to homes in moist and humid climates. However, the fungus can also arise anywhere in a home that lacks proper ventilation or cleaning.

The most common issue with mold development is property damage. What’s more unfortunate is that the majority of insurance policies don’t cover related damage and insurers typically deny these kinds of claims.

As a result, this becomes problematic for homeowners facing costly remediation and repair. If you wish to find out more about homeowners insurance and mold, check this out.

Does Insurance Policy Cover Mold?

Whether your insurance covers mold eradication techniques or mold-related damages depends on your insurance policy as well as the factors contributing to the mold development.

Most mold development arises from poor ventilation or water damage, and unfortunately, numerous policies don’t cover all types of water damage. For instance, standard policies don’t cover water damage originating from maintenance issues such as repeated or continuous water leakage or seepage.

Homeowners policies cover mold remediation and damage depending on the moisture source. You’ll discover that some policies have exclusions.

Specifically, they don’t cover remediation of damage. Such policies won’t cover mold originating from poor maintenance, failure to ventilate rooms adequately, or excess humidity that could have been addressed with dehumidifiers or fans.

Policies also exclude water damage arising from floods, unless you buy flood insurance. If your policy doesn’t cover flooding, then it probably won’t cover flood-related mold.

If you require coverage, but don’t have it, other options may exist. For instance, some policies allow you to pay more for some limited coverage. Other policies however, simply cap the amount of coverage or pay only for specified procedures such as testing.

You’ll discover that coverage varies across policies, so the only way to establish whether your policy covers mold removal involves reading it carefully.

Homeowners Insurance Doesn’t Cover these Circumstances

Leaky Roof

Homeowners insurance typically won’t pay for damage arising from a leaky roof, and the majority of policies won’t cover mold damage originating from this source.

However, if an incident occurs, such as a tree crushing through your roof, leaving a hole, insurance will typically cover the resulting damage. In this case, your policy might also cover resulting mold damage.

Leaky or Broken Pipe

Homeowners insurance doesn’t typically cover water damage resulting from a leaky pipe. If your policy doesn’t cover damage arising from a leaky pipe, it probably won’t cover a mold issue originating from this source.

However, some policies will cover damage originating from a burst pipe in which case, they may cover a mold issue arising from the burst pipe.

How to Identify Whether Your Policy Covers mold

You’ll discover some companies have measures to limit or avoid exposure to mold-related claims by:

  • Prohibiting every coverage for mold-related damage (except mold originating from a covered loss)
  • Offering a restricted coverage amount for mold-related claims, either by restricting the amount available to cover mold-related claims or by covering some expenses, for instance cleanup
  • Putting tighter restrictions on the kinds of homes they’ll insure, for instance declining to insure homes that have previously suffered water damage.

Prevention is Key

The best way to avoid a denied claim is keeping the fungus at bay. It’s important you maintain proper ventilation in your home and ensure that no moisture is standing or penetrating along walls, baseboards, floors, and ceilings.

Furthermore, you should examine plumbing fixtures for leaks and keep basements, kitchens, and bathrooms clean and dry.

Are you among those waiting until you experience mold issues to inquire whether your insurance covers mold removal? Ensure you find out in advance before it’s too late.

Are you experiencing mold issues and don’t know what to do? Please contact us and we’ll offer a solution: (416) 414-5690

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4936 Yonge Street, Suite 240
Toronto, ON

TEL. (416) 414-5690

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