Mold can be an invasive, destructive presence, as well as one that can pose a threat to health. Understandably, the discovery of mold in a home can be greatly upsetting. It can be even more frustrating to learn that, in certain instances, mold might not be covered by a renters insurance policy. There are some scenarios in which your policy does provide coverage, though, and it's vital to be aware of when you're covered and can file a successful claim.
Luckily, an independent insurance agent can help you find the right renters insurance. They can also help explain your policy's coverage to you if you have further questions. However, we'll start with a breakdown of when standard renters insurance covers mold and when it doesn't.
When Does Renters Insurance Cover Mold?
There are some cases in which renters insurance covers mold, and they all relate to the cause of the mold being due to a covered peril. Let's say the mold formed because of a leaking pipe, and it ruined a piece of personal property covered by your policy. In that scenario, you'd likely be covered. However, if the mold was caused by external flooding, you wouldn't have coverage under a renters insurance policy.
This logic applies to any named peril that leads to mold. If the wind broke a window in your home and exposed your belongings to rain that eventually led to mold, you'd be covered even though it's external water damage.
Similarly, if a fire damaged your home's structure to the point that your personal property got exposed to the elements and mold formed, the incident should be covered in terms of both the fire damage and the mold damage. Basically, if any of the perils covered under renters insurance lead to mold, a claim is likely to be approved.
When Renters Insurance Doesn't Cover Mold
Renters insurance policies have several listed exclusions for mold damage. The most significant exclusion is flood damage. Flood insurance is separate from renters insurance. So, if your mold damage can be traced to external flooding, it's very likely that your renters insurance claim wouldn't be covered, and you'd have to file through your flood insurance.
Another exclusion is where the mold grows due to your negligence or lack of home maintenance. An example of this could be if you left wet towels lying around for weeks, and they led to the growth of mold in the apartment. Your carelessness caused the damage, so you're responsible for it.
Mold growth and damage caused by a sewer backup or sewer line break are also typically excluded by renters insurance. However, you may be able to purchase a separate sewer backup endorsement or rider to add to your policy to get this coverage. Ask your independent insurance agent about any potential mold damage exclusions you're concerned about.
When Are Landlords Responsible for Mold?
If a mold infestation was caused by a busted pipe or leaking roof, your landlord would likely be responsible for covering the damage. The structure of the property is the landlord's responsibility to maintain, so incidents related to faulty plumbing or roofing aren't your concern as a tenant. Further, remember that renters insurance is only designed to cover your personal belongings, not the structure of your rented home.
It can be more complicated if the landlord's negligence in maintaining the property leads to damage or destruction of your personal property by mold. Many lease agreements dictate that the landlord isn't responsible for a tenant's personal property.
Further, a renters insurance claim for damaged personal property by mold unrelated to a water damage claim will likely be denied. In this incident, you may have to demand compensation or take legal action against your landlord to get reimbursed for your affected personal belongings.
Landlords are responsible for covering mold inspection costs
Your landlord is also responsible for covering the costs of mold inspections. Mold inspections are never the tenant's responsibility. The landlord or rental property company will cover any expenses related to necessary mold inspections, whether they're routine or related to a specific incident.
How Much Coverage Does Renters Insurance Provide for Mold?
Coverage limits in standard renters insurance policies might impose stricter limits for mold damage claims than for other types of claims. Often, you might not be able to receive reimbursement any greater than just a couple thousand dollars. While this amount is sufficient for some mold claims, it may not be enough for all of them.
If you have valuable property like jewelry or electronics, remember that these items already have coverage limits. However, you can increase your coverage for valuable items by adding endorsements or floaters and listing each specific belonging on your policy. Your independent insurance agent can help you with this.
Why Work Together with an Independent Insurance Agent?
Independent insurance agents make the process of finding the right renters insurance simple. They shop and compare policies and rates from multiple carriers in your area and select only the options that provide the best blend of coverage and cost. They can help you add any endorsements, floaters, or riders necessary to create the best overall policy for you. Also, they'll be there for you in the future if claim time comes.
Sources
https://www.valuepenguin.com/does-renters-insurance-cover-mold
https://www.progressive.com/answers/does-renters-insurance-cover-mold/
