Skip to main content

Mold Damage Insurance Coverage

Mold spores are everywhere in our environment, inside and outside. You can’t totally escape it, but you can take steps to prevent it from accumulating in your property and causing damage. Many mold damage insurance claims arise from mold that has built up over time, due to a slow leak or buildup of moisture that a property owner doesn’t notice until it has caused a lot of damage. The other common scenario is when a property owner does not adequately dry out their home or business after a flood, broken pipe, or other water backup event.

Mold damage can be very expensive to mitigate and repair, and many of us don’t consider how much coverage we really need until we need it. Some homeowners and commercial property policies exclude mold damage altogether, and others have mold damage limits that we don’t realize are far too low until faced with a building full of toxic mold.

What is mold liability coverage?

Mold insurance is coverage for damage to a covered property due to mold. Standard personal and commercial property policies can include coverage for mold damage, but pay attention to the limit. Many times, standard limits are lower than what you would need to pay a restoration service to repair mold damage and would leave you on the hook for the rest. If you find your policy’s mold coverage limit is too low, ask about increasing the limit or purchasing an additional mold damage rider.

Mold may only be covered by your policy in certain conditions. Many policies take into about the source of the moisture when determining what mold damage they will cover. If it is linked to a covered peril, such as a broken pipe, storm damage, water used to put out a fire, vandalism, or water backup (if you have that coverage), your property policy will typically cover resulting mold damage.

What should you do if you have mold damage in your property?

  1. Gather information you need to file a claim: Start investigating the probable cause of the mold damage you’ve found. Take pictures of the damage you find before you try to do any cleanup yourself. Your insurance carrier needs to see the full extent of the mold. And look over your policy: How much mold damage coverage do you have?
  1. File a claim with your property insurance carrier: As soon as you have your documentation ready, contact your insurance agent to initiate a claim. You can either contact the carrier directly, or you can reach out to your broker, who will help you file the claim. Your broker can also provide referrals to restoration companies to bring in after the adjuster takes stock of the damage. Provide as much accurate information as you can about the mold, the extent of the damage, and its probable cause.
  2. Avoid any further damage: Don’t try to do any cleanup or repairs yourself before your claims adjuster comes to take a look at your property. Without proper training, you could end up inadvertently causing even more damage to the property or to your health. If you find the source of the moisture, though, do your best to put a stop to it so it doesn’t get even worse.
  3. Cooperate with the claims adjuster and the restoration company: When your claims adjuster arrives, give them copies of the photos you took and describe the situation as best you can. Provide a list of damaged personal property in addition to the structure. And when the restoration company arrives, stay out of their way and let the professionals repair your home or commercial building. This isn’t a job to try to do yourself.

If you have any questions about what and how much mold coverage you have in your homeowners, renters, or commercial property policy, or if you are not happy with the coverage you are getting, reach out to us here at Kamm Insurance Group. We’ll help you determine an appropriate coverage limit so you have the coverage you need before your building is full of toxic mold, and, if you do need to file a mold damage claim, we’ll help you through the process and can recommend restoration companies that will fix up your place so it’s as good as new.

Get a quote