Will Insurance Cover Black Mold?

You have just discovered the most horrific growth you have seen before growing under your sink. You know black mold (Stachybotrys chartarum) is dangerous, but you aren't sure how to get rid of it safely. You also aren't sure how expensive the mold-removal process will be. In this situation, it is normal for you to wonder whether or not your homeowner's insurance will help cover the cost.

Mold Growth

Toxic black mold can grow in your home and is hazardous to you and your family because it produces toxins called mycotoxins. Your home's property values are reduced by this growth, and the mold can rot the woodwork and other areas of your home. It can leave a nasty odor behind that must be cleaned and removed.

The insurance company will decide whether the mold was because of flooding or long-term neglect. The issue of neglect could consist of exposure to humidity or repeated water leaks, and claims for mold due to these causes are more than likely to be refused. If the mold is because of a covered issue, the damage can be repaired and the pesky spores removed.

Defective Pipes

Many companies are denying coverage for mold damages, no matter what the source of the problem. If you have a leaking roof or a busted pipe, you will be covered by a homeowners insurance clause. Approximately 22% of claims for mold and water damage are not listed as separate issues and are listed as water damage and freezing problems. The mold remediation under these circumstances is covered according to the Insurance Information Institute.

The Insurance Policy

Many insurance companies are changing the coverage for mold, since the issue is debatable. It is essential to check the policy annually to be sure of what is or is not covered. It may also be more difficult to locate coverage for mold if the home has a history of mold.

If coverage is applied, it will be limited to $5,000 or $10,000 for each policy term. This is the maximum offered to remove mold from the home by stripping down the walls and replacing the property to confirm the mold is gone.

In general, many insurance policies deny the coverage of mold in the home. The issue comes down to whether the damage is caused by flooding or other emergencies within the home that could be the cause of the molding and not of because of neglect to the home, such as with maintenance problems. It is essential to keep mold under control, especially if you live in a humid climate where black mold is an issue.