The first thing to do if you find mold in your home is find out if your homeowners policy will pay to get rid of it. The answer to this question is not simple. If you have a policy that covers mold, it will depend on what that policy covers and where the mold came from. Even if you are covered, you may have to pay a certain amount of money.
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Homeowners insurance usually pays for mold damage caused by an accident that was covered by the policy. This could be a broken appliance or burst pipe. Because of natural disasters, like a flood, or long-term problems like a slow water leak, most insurance doesn’t cover them.
When You’re on Your Own
In some cases, your homeowners insurance won’t cover mold problems, so you’ll have to pay for them on your own. One is when the policy says that mold isn’t covered. Make sure you read your policy very carefully, though. An exception to the policy may be in any policy, but it’s most common in humid areas where mold is more likely to cause trouble.
Think about the fact that flood damage isn’t covered by your homeowner’s insurance. This includes mold problems caused by floods. In the event that you live in a flood zone, you’ll need to buy extra flood insurance. This insurance may or may not cover damage caused by mold. FEMA flood policies, as well as many other policies, don’t cover mold. Make sure you read your policy and talk to your insurance agent about whether or not you need to add a mold rider to your policy.
Mold also isn’t covered if your insurance company can say that you were careless, which means that it isn’t covered. There could be a small leak around the tub, like when you look at it. Make a mental note of the leak and put it on your to-do list for later. But life gets busy, and later never comes, so you don’t get around to it. If you later find mold near the leak, your insurance won’t pay for it because you didn’t fix the tub leak right away to stop it.
When Insurance Will Cover Mold
As a piece of good news, your homeowner’s insurance should cover mold if it’s caused by what insurance companies call “a covered peril.” For example, fire damage may be covered by your homeowners policy. A few days after firefighters put water on your home, you might find mold. If you have a fire, your insurance should pay for any mold removal and repair work.
A lot of times, if you have a mold problem that is connected to a problem that your insurance company covers, it will usually cover mold problems that are connected to it as well. You may be covered if your dishwasher floods your kitchen, causing mold to grow at the base of the cabinets. Mold caused by a burst water heater or a roof that leaked after a tree branch fell in a storm is the same.
Even if you paid extra for mold coverage, your insurance company must also cover mold damage if there is mold damage, right? Your basic homeowners policy (or flood insurance policy) might not cover mold. If you buy a rider (an extra insurance benefit) to get it, your insurer must follow the terms of that rider. There are some things to keep in mind, though. Not all insurance companies offer these riders, and some limit them to certain parts of the country with high humidity levels. Some states don’t allow you to get a mold rider at all, and even if you can, it might be very expensive.
While it might be true that mold is covered by your homeowner’s insurance, know that it might not be enough to cover everything. When it comes to mold removal, the costs can range from $15,000 to $30,000. After paying out a lot of money for mold claims, insurers started putting limits on how much they would pay or not covering mold at all in the 1990s and early 2000s. The insurance companies usually max out mold coverage somewhere between $5,000 and $10,000 because of this.
Making a Claim
Make sure your insurance company agrees with you if you think it should cover your mold problem. There are some things you can do to increase the chances that it will. The first thing you need to do is call your insurance company and let them know about the problem as soon as you can.
In the next step, do what you can to make things better, but don’t mess with anything an insurance adjuster will want to see. If you can, open the doors and windows and run a dehumidifier if you have one to help dry out the area. Take a lot of pictures and videos of the mold itself and the source if you know it. If you’re not sure, don’t make things up. Instead, ask your insurance company to look into it.
A recent claim for a covered peril may have caused mold to grow in your home. Gather any paperwork or photos you have about that claim and any other information you have about the mold. A good idea is to be ready. Your insurance company should be able to get this information on its own.
Do not try to clean or change the mold on your own. Don’t use bleach, disinfectant, paint, or any other solution on the area that needs to be cleaned or painted. Want them to see what you’re seeing and pay a professional to fix it. Avoid giving your insurance company any reason to say that you made things worse and then deny your insurance claim.
If You’re Denied
It’s possible that your mold claim won’t be covered, but that doesn’t mean it won’t happen to you. if your insurance company doesn’t pay your claim, but you think it’s legitimate, find out how you can get it back. Make sure the mold removal service you choose can write up a report for you that includes the source of the mold if it can be found.
You can also talk to your state’s insurance commissioner about this. Can help you figure out your next steps. If you lose your appeal, you can at least file a complaint with the insurance commission if there is nothing else you can do.
Mold Prevention Tactics
We both want to avoid having to make a mold claim at all. To help your case if you need to file a claim, show that you took steps to keep mold out when and where you could. Nobody can foresee a burst pipe or a broken water heater, but there are steps you can take to avoid mold growth in other situations.
When there is mold, it is caused by a fungus that is all over the place. So, mold can grow in a wet place in just 24 to 48 hours. As soon as you can, fix the problem and dry things out as quickly as you can. For example, your insurance company might take a few days to fix your broken dishwasher. Clean up any water that is still standing and try to keep things as dry as you can while your insurance company does its job.
To keep your basement or another part of your home from getting too moist, run a dehumidifier. Try to keep the overall humidity level in your home between 30% and 60%, and don’t carpet areas that are likely to get wet, like the basement. Make sure your kitchen, bathrooms, and laundry area are properly ventilated to the outside, and clean wet areas with bleach to keep mold at bay. It’s also a good idea to change the water supply hoses on your dishwasher, refrigerator, washer, and other water-using appliances every five years, because they can get clogged up.
To keep your basement or another part of your home from getting too moist, run a dehumidifier. Try to keep the overall humidity level in your home between 30% and 60%, and don’t carpet areas that are likely to get wet, like the basement. Make sure your kitchen, bathrooms, and laundry area are properly ventilated to the outside, and clean wet areas with bleach to keep mold at bay. It’s also a good idea to change the water supply hoses on your dishwasher, refrigerator, washer, and other water-using appliances every five years, because they can get clogged up.
