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Mold Remediation Insurance: What’s Covered and How to File Claims

Picture of Written by: Rodrigo Ogliari

Written by: Rodrigo Ogliari

Owner of CEO Restoration | Master Water Restorer | MRSR#3893

Mold in your home is not only a health hazard but can also lead to costly damage if left untreated. It’s crucial for homeowners to understand whether their insurance policies cover mold remediation and what steps to take when filing a claim. This guide will explore the scenarios where mold is covered by homeowners insurance, what exclusions apply, and how to maximize your chances of getting the right coverage for mold-related damages.

When Does Homeowners Insurance Cover Mold?

Homeowners insurance generally covers mold remediation when the mold is a result of a “covered peril.” A covered peril refers to sudden and accidental events, like water damage from a burst pipe, that are included in your insurance policy. If mold grows as a result of one of these events, your insurance will likely cover the removal and associated repairs. For instance, if a washing machine malfunctions and causes water damage that results in mold, your policy may cover the cleanup and repairs to prevent further damage.

Here are common situations where homeowners insurance typically covers mold:

  • Burst pipes: If a pipe bursts unexpectedly and leads to water damage, any resulting mold is generally covered by your insurance.
  • Water heater rupture: A sudden rupture of your water heater causing mold on nearby walls is usually covered.
  • Firefighting efforts: Water used to extinguish a fire can cause mold to develop, and this is often covered by your policy.
  • Appliance malfunctions: If your dishwasher or washing machine leaks suddenly and leads to mold growth, your policy should cover the remediation.

When Mold Remediation Is Not Covered

While many homeowners insurance policies cover mold caused by sudden incidents, mold caused by neglect or lack of maintenance is typically excluded. Mold growth resulting from long-term issues, such as persistent leaks or poor ventilation, will likely not be covered, as these are considered preventable. To understand when professional intervention is needed, see Why Mold Remediation Should Be Left to the Professionals.

Common exclusions where mold is not covered include:

  • Ongoing leaks: If a leaky faucet or roof has been left unrepaired for weeks or months, mold resulting from this issue is considered preventable and not covered.
  • Humidity or poor ventilation: Mold caused by natural humidity, like in a poorly ventilated bathroom, will not be covered, as this is considered a homeowner’s responsibility.
  • Flood damage: Standard homeowners policies exclude flood-related mold, even if you have separate flood insurance. Only in specific cases where you are unable to access your property after a flood might mold be covered under a flood insurance policy.

How Much Does Insurance Pay for Mold Remediation?

Mold remediation can be expensive, costing anywhere from $15,000 to $30,000 for severe infestations in an entire house. To minimize their risk, many insurance companies limit how much they will pay for mold remediation, even when the cause of the mold is a covered peril. Typical policies set a maximum payout for mold removal between $1,000 and $10,000. In mold-prone regions, such as Florida or Louisiana, purchasing additional mold coverage as a rider may be beneficial.

How to File a Mold Remediation Insurance Claim

If you discover mold after an event like a burst pipe or a malfunctioning appliance, follow these steps to file a claim successfully:

  1. Document the damage: Take photos or videos of the mold and water damage as soon as possible. Make sure to create a detailed inventory of affected areas and property.
  2. Contact your insurance company: Reach out to your agent as soon as you discover the mold to file a claim. Acting quickly prevents the mold from spreading and helps avoid further damage.
  3. Mitigate further damage: After documenting the damage, take steps to reduce moisture by drying out the affected area. Open windows, run a dehumidifier, or use fans to prevent the mold from worsening. For more on how to manage moisture levels, check The Role of Dehumidifiers in Preventing Mold Growth.
  4. Get a professional assessment: Hire a mold remediation specialist to assess the extent of the mold damage. A professional estimate can support your claim and help ensure proper coverage.

Maximizing Your Mold Remediation Claim

To improve your chances of receiving compensation, make sure to provide thorough documentation to your insurance company. The more evidence you have, the easier it will be to get coverage for mold remediation. Keep receipts for all temporary repairs or costs associated with mitigating the damage, as you may be reimbursed for these expenses.

When Should You Avoid Filing a Claim?

Filing a claim may not always be worthwhile, especially if the mold remediation costs fall near your deductible. For instance, if your deductible is $2,000 and the average cost of remediation is $2,235, you’d only receive $235 from the insurance company. Furthermore, filing a claim can increase your premiums in the future. Consider whether the cost of mold remediation significantly exceeds your deductible before submitting a claim.

Preventing Mold Growth in Your Home

The best way to avoid dealing with mold remediation and insurance claims is to prevent mold from growing in the first place. Mold thrives in damp, poorly ventilated areas, so keeping moisture under control is essential. Here are some steps to prevent mold in your home:

  • Control humidity: Keep humidity levels between 30% and 60% using air conditioners and dehumidifiers, especially in damp areas like basements. As highlighted in How to Prevent Mold Growth in Your Orlando Home.
  • Fix leaks immediately: Address any plumbing leaks as soon as they occur to prevent water damage and mold growth. For tips on water damage management, explore Step-by-Step Guide to Water Damage Restoration.
  • Improve ventilation: Use exhaust fans in high-moisture areas like bathrooms and kitchens to reduce humidity.
  • Inspect regularly: Check areas like crawl spaces, the basement, and under sinks for signs of moisture or mold.

Conclusion: Understanding Your Mold Remediation Insurance Coverage

Mold remediation is an important and costly process that can sometimes be covered by homeowners insurance, depending on the cause. Understanding when mold is covered, how to file a claim, and what steps to take to prevent mold can save you time, money, and stress. Be proactive in maintaining your home, and always review your insurance policy to ensure you have adequate coverage for mold-related damages. For further insights, visit our Comprehensive Guide to Mold Remediation.

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