Mold Remediation and Insurance

11/18/2016 (Permalink)

Homeowners insurance does not always cover mold remediation.  Coverage varies from policy to policy, so it would be a good idea to always check with your provider.  The cause of the mold is important in determining coverage.  More times than not, homeowner’s insurance will cover specific reasons such as pipe bursts, roof leaks, and flooding.  However, if the mold is caused by general neglect of home maintenance, insurance companies are less likely to cover the mold remediation.  

Mold Caused by Flooding

The Illinois Department of Insurance states the following regarding mold caused by flood damage. “Homeowners policies also exclude water damage caused by floods.  Therefore, if one of these water or moisture problems results in mold, it would probably not be covered by your policy.”  Note the word “probably” because policies vary greatly.  Just because the norm may not cover mold from flood damage does not mean all do not.

Mold Caused by Fire

The following is the Illinois Department of Insurance statement regarding fire and mold.  “In Illinois, if mold results from water damage following a covered fire or lightning loss, the mold damage would be covered, and the total of all damages, including the mold, is subject to the full policy limit.”  This means that if your policy covers fire loss, then any mold subsequently due to the fire loss will be covered.

Things to Keep in Mind

1. Insurance companies have taken steps to limit the amount of mold claims. Some companies exclude all coverage of mold-related damage unless it is the result of a fire loss.
2. Restrictions can be placed on the kinds of homes that are covered. If your home is made out of specified materials related to your policy, it would be a good idea to call your provider to verify coverage.  Materials such as synthetic stucco may not be covered. 
3. Some companies increase the overall price of the policy in anticipation of mold-related costs.
4. Limits can be set by insurance companies. For example, the policy could state that it only covers mold-related claims up to $5,000. 
5. Maintenance issues are generally excluded from coverage. Such as poor landscaping and drainage problems. 

For more information about mold remediation refer to SERVPRO of Carol Stream East Bloomingdale