Is Your Mold Damage Covered By Homeowners Insurance?

12/16/2021 (Permalink)

Mold damage can be a headache for homeowners. It's important to know your coverage when it comes to mold damage so you know your protection.

Homeowners insurance protects you against certain types of water damage and coverage is usually dependent on source of the water and the homeowner's responsibility to maintain certain parts of the home. What about mold damage?

There isn't a clear answer because coverage and the amount of coverage is usually dependent on various factors. Mold can spawn from a number of sources and depending on the source and the action that was taken by the homeowner. Similar to water damage, mold coverage policies are similar in nature. 

Resulting damage from a covered peril

Homeowners insurance will usually cover mold caused by "resulting damage" from a covered peril. If an appliance causes a water leak which leads to mold, then the mold damage would be covered. Mold caused by an bursting pipe would also be covered because the initial water damage from the bursting pipe would be covered and mold is the "resulting damage". Another example of "resulting damage" from a covered peril is firefighters extinguishing fires in your home and the remaining water has caused mold to grow. Since the initial fire was a covered peril, then the mold will most likely be covered as well.

Mold damage from disasters

Mold damage can occur from outside sources and homeowners insurance spells out a list of disasters covering resulting mold damage. The most common disaster associated with mold damage are floods and flash floods. Flood damage, is not usually covered through a regular homeowners insurance and a separate flood insurance must be bought. Homeowners insurance have an interesting policy of coverage from external water sources. If the external water source that enters the home is touching the ground, then it is not covered. This includes floods and sewage backups. This extends to mold damage and resulting damages from the listed events above. If you are in an area of frequent flooding, flood insurance might be good to invest in since you are covered for the resulting mold as well. For other disasters, however, you may be covered. If a hurricane or an ice storm tears openings in your home causing resulting mold, you are most likely covered by your homeowners insurance.

Mold damage from negligence

Mold damage that results from a failure of the homeowner to maintain an upkeep certain areas of the house will not be covered. This includes failure to fix leaking pipes, tubes, appliances, etc. For example, if you knowingly could have prevented the mold just by fixing a leaking pipe causing gradual water damage or knew that you had openings in your roof allowing water to come in to your home, you won't be covered for the resulting mold damage. If you were in a clear position to prevent mold from happening, you may be denied a claim.

It is important to know your coverage when it comes to mold. You can also take preventative measures to mitigate the probability of mold before the problem even starts. Here are some steps you can take:

• Maintain moisture levels, invest in a dehumidifier
• Regularly maintain plumbing, look for leaks in pipes
• Allow proper ventilation for rooms that might have a lot of moisture: bathrooms, kitchen, laundry room.
• Maintain proper upkeep of your roof
• Clean gutters to ensure rainwater is channeled properly
• Maintain proper temperatures near pipes
• Check whether or not appliances are in working order and not leaking

At SERVPRO, we work with your insurance company. We understand the process from start to finish and we can help restore and clean your home from mold damage and assist you through the claims process. If you have any questions on the claims process for mold damage or need mold repairs, call SERVPRO of Monterey Park.