Does Homeowners Insurance Cover Mold?

For decades, mold has been a highly contentious issue in the home insurance industry. Between the late 1990s and early 2000s, the insurance industry changed the wording of home insurance policies to exclude mold coverage in response to increased mold damage claims associated with homeowners insurance water damage claims.

Texas insurers were receiving multiple claims for the same properties in particular. Due to multiple claims, the paid mold claims on a single house may exceed the homeowner's insurance limit.

Most states now enable house insurance carriers to exclude mold from coverage unless a covered problem caused the mold.

Is Mold Covered by Homeowners Insurance?

Mold is unclean, unattractive, and extremely difficult to remove. Hopefully, with good home care, you'll never have to deal with mold. However, the unexpected happens occasionally. Mold can begin to grow in places such as your bathroom, basement, or kitchen through no fault of your own. If that occurs, you're likely to wonder how much of the removal is your responsibility.

Mold will be covered under your homeowner's insurance policy on a case-by-case basis, which means that not every incident will be covered. For various reasons, mold coverage is one of the most complicated sections of your homeowner's insurance policy. Not only is mold difficult to remove, but the source of the mold is also difficult to trace (which you need to know when filing a claim).

So what do you do if you discover mold, and how do you determine whether mold damage is covered under your home insurance policy?

Get a highly skilled property damage attorney. They will hire specialists that can address all of your concerns and offer advice on how to deal with this troublesome growth once it appears in your home or condo, as well as how to prevent it from recurring.

What type of damage does mold produce that is covered by homeowners insurance?

Before you sign (or renew) your homeowner's insurance policy, it's a good idea to conduct some research on the sorts of mold development that your insurer covers. This way, you'll know what to expect when the time comes to make a claim for mold damage in your home and pay your deductible.

The extent to which your home insurance policy covers mold is primarily determined by the dangers covered. While each policy is unique, you will almost certainly be protected against the following causes of mold:

• Failure of an appliance or equipment
• Fallen Objects
• Pipes that are frozen, broken, leaking, or burst
• Mold growth as a result of extinguishing a fire
• Water and steam overflow or discharge
• Heating and air conditioning system
• Sprinkler system for automatic fire protection
• Domestic appliance
• Snow, ice, and sleet weight

The preceding is by no means an entire or guaranteed list; therefore, you should carefully examine your policy to see which risks are covered. Once you have that list, you will have a clearer idea of when you can file mold claims.

Another point worth mentioning about mold coverage is that most insurers need damage caused by a "sudden and accidental" occurrence. Essentially, this means that the source of the mold must occur abruptly and without fault for it to be covered. The mold that develops due to neglect or homeowner negligence is classified as uncovered.

What effects does mold have that are not covered by homeowners insurance?

While you may believe your house insurance coverage covers everything, this is not always the case. Mold caused by dangers not covered under your dwelling/personal property insurance policy will be excluded from coverage.

Thus, suppose you chose not to get supplemental flood insurance and your home is flooded as a result of rainfall or other natural calamities. Mold growth as a result of the water damage would not be covered. In a scenario like this, it is advised that you purchase flood or hurricane insurance, or at the very least, add a mold endorsement to your policy.

Additionally, insurers do not cover mold growth caused by damage that occurred before the policy's commencement or before you purchased your house. Therefore, perform a comprehensive inspection of your new home prior to purchase (or before switching policies). Finally, when it comes to mold, homeowner negligence is another exclusion. If you discovered a leak but waited a long time to remedy it or simply did not detect it at all, the mold that developed would be your responsibility to clean up.

Mold will be covered under your homeowner's insurance policy on a case-by-case basis, which means that not every incident will be covered. For various reasons, mold coverage is one of the most difficult sections of your homeowner's insurance policy. Not only is mold challenging to remove, but the source of the mold is also difficult to trace (which you need to know when filing a claim).

So what do you do if you discover mold, and how do you determine whether mold damage is covered under your home's insurance policy?

We suggest contacting a highly skilled home insurance lawyer with specialists to address all of your concerns and offer advice on how to deal with this troublesome growth once it appears in your home or condo, as well as how to prevent it from recurring.