Home ownership brings many new responsibilities with it. Suddenly, you’re concerned about things like carbon monoxide detectors, mold and mildew, and homeowners insurance. If you live in a damp climate or one that tends to have humid summers, you may be wondering if your home coverage provides protection from mold or if you need some kind of special mold insurance.
Fortunately, an independent insurance agent can help you get set up with all the coverage you need for your home against mold and related damage. They can help you determine if you have homeowners insurance mold coverage and when you can expect claims to be covered. But first, here's a closer look at mold coverage insurance.
Are Some Homes More Prone to Mold?
Certain homes are more susceptible to mold than others. One contributing factor is the age of your home. Homes built in the past 30 years are more energy-efficient but don’t “breathe” as well as older homes, increasing the risk of mold. Recently, however, builders began using mold-resistant wood, drywall, and paint to help prevent its growth.
Another contributing factor to mold is your home's location. If you live in a humid climate, your home is more prone to mold. Southern states with very humid climates, such as Texas, Missouri, and Florida, often have high-profile mold cases.
Is There Such a Thing as Mold Insurance?
Technically, there is no separate mold damage insurance policy that offers you protection. Your homeowners insurance policy may cover mold in certain circumstances. If you have flood insurance, and the mold is due to flooding, your policy may cover the professional removal of mold.
In addition, some home insurance companies offer riders that provide mold coverage on your homeowners policy, known as mold coverage endorsements. An independent insurance agent can help you add mold coverage to homeowners insurance.
When Does Homeowners Insurance Cover Mold?
You may have heard a horror story from a friend, neighbor, or family member who had to deal with a case of toxic mold. A discovery like this can turn into an expensive mold remediation process and a battle to have your home insurance claim covered.
You may have been left wondering, "When will insurance cover mold?" and whether your policy includes mold remediation coverage. Fortunately, not all mold-related insurance claims are denied automatically.
One key to answering, "Is mold covered by homeowners insurance?" and whether your claim will be covered is the source of the mold. If the mold occurs because of a sudden event like a burst pipe that caused water damage, the claim may be covered.
But if the mold is due to neglected maintenance, seepage, or long-term exposure to humidity, your mold claim will most likely be denied. It's also important to understand that your policy likely has a strict mold remediation coverage limit, which might range from $1,000 to $10,000.
How and When to File Mold Claims
Even if you take many precautions to prevent it, you may find yourself with a mold problem. In addition to managing the mold remediation process, you may want to file a claim with your insurance company. Consider the following tips when filing your claim:
- Contact your independent insurance agent first to inquire about any wording in your home insurance policy regarding mold, and keep copies of all correspondence.
- Review your home insurance policy, paying close attention to any exclusions and proof of claim requirements.
- Don’t throw away any damaged property; take photos to document mold damage.
Your independent insurance agent can help walk you through the claims process and even file claims for you, directly through your insurance company.
What Does Mold Coverage Include?
If your claim for mold damage is approved, your home insurance can potentially cover the cost of repairing your home. It may also cover the cost of mold removal and remediation services. However, remember that it can be tricky to get coverage for mold-related damage at all. Many causes of mold are not covered.
If you're wondering, "How much mold coverage do I need?" ask your independent insurance agent to review your policy with you. Your agent can determine how much coverage is appropriate given the value of your property. They'll also be able to tell you if your policy already includes this protection, or if mold damage requires an extra endorsement.
How Much Does Mold Insurance Cost?
Mold insurance isn't a separate product, and instead is sometimes included in home insurance policies or available as a rider or endorsement. The cost of your home insurance can vary based on many different factors, such as your exact location.
If you add a mold coverage endorsement, it may increase your premium rates by a bit. An independent insurance agent can help you find affordable home insurance and mold coverage near you.
Don’t Let Mold Catch You Unprepared
In many instances, you may not even see the signs of a mold infestation, especially when it occurs in a back closet, basement area, or between walls. Letting mold go unresolved can prove hazardous to your home and your health.
When faced with the prospect of mold remediation, you may wonder if you can handle it yourself. Unfortunately, remediation can be both dangerous and ineffective because mold can be tenacious, and the chemicals needed to conquer it can be as hazardous to you as the mold.
Although you can’t predict if or when you’ll need mold insurance, it’s best to evaluate the risks in your geographic area with a knowledgeable local professional. Choosing the right insurer and coverage for your home can help you prepare for the unexpected.
The Benefits of Working with an Independent Insurance Agent
If you're concerned about potential mold damage to your home, speak with an independent insurance agent right away. They can help you assess your coverage needs and use their relationships with several different insurance companies to find you a suitable policy at a competitive rate.
Your independent insurance agent can even find ways to save you money on your other insurance policies. Find a local independent agent in your neighborhood today who can provide the details you need to make an informed choice about homeowners insurance and mold coverage.
FAQs About Mold and Home Insurance
Is mold covered under a standard homeowners insurance policy?
The answer is that it depends. When it comes to mold, the cause of the outbreak will determine whether it’s covered by your insurance or not. Most standard homeowners insurance policies provide coverage for mold and mildew under certain circumstances, but not all.
When and how does homeowners insurance cover mold?
Mold is caused by an excess buildup of moisture that remains stagnant and is unable to dry out over a long enough period. It can grow due to something as simple as excess humidity, or something more complex like water damage inside the home. As with other things that homeowners insurance provides protection for, the cause of the mold must be due to a covered peril.
Standard homeowners policies typically provide coverage for mold in the following scenarios:
- Water damage due to plumbing issues: A broken pipe or faucet that causes a leak or flooding in the home and eventually leads to an outbreak of mold is usually covered. This includes the home’s structure and personal property. Your homeowners policy will typically cover costs associated with fixing the water damage and removing the mold.
- Water damage due to covered natural disasters: If your home suffers extreme water damage due to a covered natural disaster (e.g., lightning, windstorm, hail, blizzard, or fire) and mold forms as a result, your homeowners insurance policy should provide coverage for both the water damage and the mold.
Homeowners insurance typically does not cover mold due to the following:
- Negligence or failure to maintain the home: Many accidental causes of mold outbreaks are not covered by homeowners insurance. If you install carpet in a damp space (like the bathroom), mold removal and carpet replacement probably won’t be covered.
- Outbreaks due to warm climates: If you live in a warm, humid climate and fail to leave the AC on, and you experience a mold outbreak as a result, homeowners insurance isn't likely to cover you.
It’s important to review your specific homeowners insurance policy with your independent insurance agent so you can better understand exactly when you’ll be covered for mold treatment and removal.
However, the best offense against mold is a good defense. Work to keep your home mold-free and prevent these issues in the first place, especially since, in many cases, your standard homeowners policy probably won’t cover you.
How much do I have to pay if homeowners insurance does cover mold?
If the mold outbreak occurs due to a covered peril such as water damage from a busted pipe or natural disaster, you’ll be covered up to your policy’s limit in the structure of the dwelling category or your personal property category. It depends on what the mold has damaged. Limits for the personal property category of homeowners insurance vary by policy, but you can always purchase more coverage.
First, you’ll have to meet your policy’s deductible. A standard homeowners policy has a deductible that’s typically 1% of the home’s value, so if your home is worth $300,000, you might have to exceed $3,000 in damaged personal property (including damage from things like water and mold) before your insurance will start paying. However, you can work with an experienced independent insurance agent to get a policy with a lower deductible.
If your homeowners insurance covers mold removal in one area of the home but you have outbreaks in other areas as well, you can purchase additional coverage to get those areas of the house cleaned up, too. However, this type of coverage is expensive, and it’s not commonly added. It’s best to just prevent mold outbreaks as much as possible in the first place.
If homeowners insurance doesn’t cover mold, what will?
If the cause of your mold outbreak isn’t considered to be a covered peril under your homeowners insurance policy, unfortunately, you’ll probably be stuck paying out of pocket for it. There isn’t a type of insurance available specifically to protect homeowners against mold infestation.
That’s why it’s so important to keep up with your home’s routine maintenance and keep it as clean as possible. Remember, the best offense is a good defense.
