The Lowdown on Mold Insurance

Insurance companies are starting to avoid insuring all damages caused by mold. This is a big change from what they used to do. Formerly, insurance companies would pay claims for mold that resulted from a covered incident such as broken pipes, fire and such.

However, with the public being more aware of the dangers of mold combined with the fact that mold removal techniques are becoming more complicated and expensive, insurance companies no longer wish to absorb the risks. Insurance companies are refusing to cover mold damage claims under existing polices and are rewriting current and new polices to exclude mold coverage. Government regulation may be required to change this situation. Be sure to have a complete copy of your insurance policy. This includes the original policy along with any addendum or changes. You need to read and reread it to determine exactly what coverage exists for mold damage and what steps need to be taken to file a claim.

Insurance claims for mold damage usually fall into one of two categories. The first is where hidden moisture or leakage has caused mold growth and the other is with a sudden influx of large amounts of water such as a flood. In this case, mold can grow if the building is not dried out immediately.

There are two types of insurance claims. Direct damage to the insureds property is the first type. This is where your property is directly damaged by something like a pipe leak or your tree falling on your roof. The second type is indirect or damage caused to your property by a neighbor tenant or other party. Be sure you know what your policys limits and exclusions are no matter what type of coverage you have.

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