So if you were unaware of some sitting water in your basement, and mold grew over time and traveled up the walls and into your floorboards, this won’t be covered by your policy. Some policies may have exceptions to the exclusions and will provide very minimal coverage for mold contamination. Usually homeowners insurance won’t cover damages from mold if it was caused by: Most homeowners insurance policies have a long list of exclusions of damage caused by mold. In some cases you can add mold coverage with higher limits in exchange for a premium increase. Still, mold coverage might be limited to $10,000. This is the best way to ensure your insurance provider will cover the damages, “ says Severaid. “Overall, to make a successful mold claim you must demonstrate that the damage from the mold was sudden and accidental when you found it and you reported it promptly to your insurer. Usually mold, mildew, fungus or spores will be covered by home insurance if they were the result of a specific problem that was covered by your policy. An example would be water damage from a burst pipe that then leads to mold. But some forms of mold are considered hazardous, such as black mold, which can produce chemicals that cause severe illness. Mold is a fungus that can be found almost everywhere in and outside your home. When is Mold Covered by Homeowners Insurance? Now most states allow home insurance companies to exclude mold from coverage, except when the mold was the result of a problem covered by the policy.īecause your homeowners insurance policy may provide only limited mold-related coverage, there are a few things to consider in order to avoid the staggering cost of trying to get rid of mold. Insurers quickly realized that covering mold was too risky of an endeavor therefore, many policies now offer limited coverage, if any,” says Steve Severaid, senior vice president and treasurer with The Greenspan Co./Adjusters International. “Back when mold-related damage was covered, insurance companies were paying out hundreds of thousands of dollars in claims. One property’s paid mold claims could be higher than the homeowner’s insurance limit due to multiple claims. Texas insurers, in particular, were getting multiple claims for the same properties. Between the late 1990s and early 2000s, the insurance industry altered the wording of home insurance policies to limit mold coverage after a spike in mold damage claims in conjunction with homeowners insurance water damage claims. Mold has been a very contentious topic in the home insurance industry for decades.
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