Does Homeowners Insurance Cover Mold?
Mold can be disastrous for a homeowner. It can cause health problems for those exposed and can be hard to eradicate. In the homeowner insurance industry, mold has often been a point of contention.
In the late 1990s, there was an acceleration in the amount of claims being filed due to mold. By the early 2000s, the insurance companies decided to reword some of the language used in their homeowners’ policies to make mold coverage a little more difficult to claim when it was being claimed when properties sustained water damage. At times, the insurance company would be expected to pay more than the policy limits because multiple claims were being filed.
U.S. Insurance Company’s Mold Coverage
Black mold was covered by insurance companies, and it was costing them big money. Because of this, insurance companies determined they were losing lots of their profits by offering coverage for mold. This encouraged them to rewrite their policies so that they were only required to offer limited mold coverage.
In the majority of states in the U.S., insurance companies do not cover mold. The expectation of the rule is when the mold was caused by another issue that the policy does cover. When facing mold in your home and the exorbitant expenses associated with getting rid of it, as a homeowner, you will want to consider having an attorney look over your policy for you.
When is Mold Coverage Provided?
Mold is a common fungus widely located inside and outside. Many are not troublesome, but types such as black mold can produce serious health threats. The presence of mold may not be covered by your insurance policy on its own.
However, if mold occurs because of another incident that is covered by your insurance, your insurance might provide money to handle the repercussions of it happening. Some examples of cases where your homeowner’s insurance policy might cover mold clean-up are as follows:
- Dealing with the mold that is caused by water damage due to a plumbing mishap such as a burst pipe.
- The insurance may cover mold caused by a faulty hot water heater that floods the basement.
- Mold caused by the use of hoses to put out a fire in the home would likely be covered by the insurance company since the fire would be covered.
Mold that has been present for an extended amount of time will probably be an out-of-pocket expense for the homeowner to clear up. The homeowner must prove that mold came on suddenly and accidentally. The best way to ensure damages are paid is as soon as the mold is detected. It must be reported to the insurance company.
Limitations on Mold Coverage
Depending on the premiums, it is likely that homeowner’s policies limit the coverage they provide for incidents of mold. The average mold coverage is limited to about $10,000. Homeowners face quite a few exclusions when assessing the damage caused by mold and what the insurance will take care of repairing.
The following list will not typically fall under the damages that a homeowners insurance policy will provide coverage for:
- Typical wear and tear
- Unrepaired leaks that should have been noticed sometime earlier
- Moisture or water damage dating back to construction
- Repairs that were poorly conducted
We Will Be Happy To Review Your Policy
If you have been affected by mold and feel your insurance company should provide financial help cleaning the situation up, reach out to our San Diego homeowner insurance dispute attorney today. Dawson & Rosenthal Trial Attorneys are dedicated to helping our clients. We are happy to review your policy to see if help can be found there.
Contact us today. We are happy to handle all of your needs concerning your homeowner’s insurance policy as well as the growth of mold on your property.