On many occasions, I field calls from customers who have mold growth in their home and are under the impression that their issue is covered under their insurance policy. In certain instances this is true, but in most instances it isn’t. Most policies have any where from Five to Ten Thousand Dollars worth of coverage, but not for mold as a stand alone issue. The way it works is this: If you have a water loss which is covered under your policy, like a hot water tank break, pipe burst or a roof leak, then if that initial issue causes mold, it is covered under that Rider. So, if your hot water tank breaks and floods your basement which results in growth on the walls, then your policy will cover the water damage and separately cover any growth found, up to the limits set on your policy. But if you have mold growth due to humidity issues or poor ventilation, it will not be covered, nor would any content damage.
It is very important to understand what your policy covers and it’s limitations. Most people just sign papers laid out in front of the them and do not understand their policies until they have an issue. And although most claims don’t overuse the Five Thousand Dollar Mold coverage that they have, the additional fees to have Ten Thousand Dollars worth of total Mold/Biological Coverage is minimum compared to the potential out of pocket cost when a major loss occurs. If anything can be taken from this blog, it is to know your policy coverages, understand your limitations, check to see if you have content coverage which is very important and check your Mold Removal/Mold Remediation Rider.
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