Does Homeowners Insurance Cover Mold?
Mold is the last thing you want to find in your home. Mold exposure can lead to health issues like a stuffy nose, wheezing, and itchy eyes. Mold also spreads quickly and grows on damp surfaces, and it will continue to spread until the problem is resolved.
After you've recovered from the shock of discovering mold and considered your next best course of action, you may be concerned about the cost of mold removal. You may be wondering if your home insurance policy covers mold as you see dollar signs flashing through your mind. Learn about mold's effects, when mold is covered by your homeowners insurance, and how to fix mold problems.
Why Is Mold in Your House a Problem?
Mold is a fungus that breaks down dead matter and thus plays an important role in the decaying process. Mold is a necessary part of the world outside your home, but it can cause health problems inside your home, especially if left untreated.
Mold can cause nasal congestion, wheezing, itchy eyes, and a cough. Other symptoms, such as fever, memory loss, and fatigue, have been reported but have not been definitively linked to mold. People with a suppressed immune system are more likely to experience serious side effects from mold exposure.
Homeowners Coverage for Mold
If you discover mold in your home, you should file a claim with your insurance company. The source of the mold problem will determine whether or not you are covered under your homeowners policy. Most home insurance policies cover mold damage caused by an unexpected, covered peril. However, mold coverage may be limited under the policy. The Florida Department of Financial Services, for example, reported that the most common mold coverage limit it sees is $10,000. Mold can be caused by water damage from a burst water heater, a leaking appliance, or firefighters extinguishing a fire.
You must mitigate further losses by taking common-sense precautions, such as drying out damp areas of the home as soon as possible to prevent mold growth. Failure to do so may result in you not receiving the full claim reimbursement for the covered event.
Most policies, however, will not cover mold caused by gradual damage over time. This means that mold damage caused by a leaking pipe that you were aware of but failed to repair is not covered. Similarly, if your window isn't properly sealed, water can seep into your wall every time it rains. The resulting damage is not covered either.
- A standard insurance policy would not cover mold damage caused by a flood. A separate flood insurance policy would be required.
It is critical to read your policy to understand what is and isn't covered by your homeowners insurance. Some insurance companies, for example, have a mold exclusion, which means they will not cover any mold claims.
You might be able to add an endorsement to help cover mold remediation costs. This raises the policy limits for a covered event. Inquire with your insurance agent about including this in your policy.
What To Do When You Have Water Damage
If you have water damage, contact your insurance company as soon as possible. Make sure to take photographs of the mold. Keep a record of everything affected by the mold so that you can submit it to your insurer when you file your claim.
Then, make any necessary temporary repairs to prevent further water damage. Turn off the water lines to broken appliances, for example, or place cardboard in a broken window. Don't make any permanent repairs until your insurance company has reviewed the damage. Your insurer may send out an adjuster to assess the extent of the damage before making a decision.
- If you suspect mold in your home, take the necessary precautions while you investigate. Wearing gloves to protect your skin and goggles to protect your eyes is recommended by the Environmental Protection Agency. You should also wear an N-95 mask, according to their recommendations, to avoid breathing in mold spores.
Costs of Mold Damage Repair
If your homeowners insurance does not cover mold damage in your home, you will most likely have to pay for repairs out of pocket. The first step is a mold inspection, which determines the source and extent of the damage and provides a repair estimate. An inspection typically costs between $200 and $600, though some companies provide a free initial inspection. Once you know the extent of the damage, you can decide whether you want to do the cleanup yourself or hire a professional.
The cost of mold remediation is determined by several factors, including the size of the impacted area and the extent of damage. Mold remediation costs homeowners between $1,100 and $3,325 on average. Greater areas can cost up to $6,000. If you have mold damage throughout your home, expect to pay between $10,000 and $25,000 per 1,000 square feet to remove it.
How To Prevent Mold Growth
The most effective way to deal with mold in your home is to keep it from growing in the first place. The following suggestions may assist you in keeping mold at bay in your home.
- With dehumidifiers, you can keep the humidity in your home below 50% at all times.
- Increase circulation and airflow by adding ventilation with exhaust fans.
- Your clothes dryer should be vented outside.
- Repair leaks as soon as possible to avoid damp surfaces.
- If water damage occurs, dry your home quickly and completely.
- Before painting your walls, mix mold inhibitors into the paint.
- In your bathroom, use mold-killing cleaners on a regular basis.
Frequently Asked Questions (FAQs)
Which types of mold does homeowners insurance cover?
Mold that grows as a result of a covered event is typically covered by homeowners insurance. Water damage from a burst or frozen pipe, fire extinguishing efforts, or a malfunctioning appliance are all examples of this.
What does homeowners insurance not cover?
Flood damage is not covered by a standard home insurance policy. Other non-covered events include earthquakes and damage from a continuous leak. Damage from windstorms, hail, or hurricanes may also be excluded depending on where you live.