In some cases, ordinary homeowners’ insurance will absolutely cover mold. In other cases, mold is not covered under a typical homeowner’s insurance policy. Mold damage is quite often a result of preceding water damage. By default, a homeowner’s insurance policy will not cover mold damage. However, home insurance policies will cover mold damage if it was caused by what is called a “covered peril”. A covered peril is an incident that causes the loss or damage that your insurance policy provides coverage for.
Examples of commonly covered perils on a typical home insurance policy are:
- Lightning • Vandalism • Theft
- Falling objects
- The weight of ice, snow, or sleet on your home
- Water damage from frozen pipes and breakage of pipes
- Water damage from sudden accidental leaks or overflows of water from plumbing, heating, air conditioners, sprinkler systems, or household appliances
However, most insurance policies do not cover flood damage and therefore mold that is a result of a flood is not covered under a standard homeowner’s insurance policy. Flood insurance coverage can be purchased separately from the National Flood Insurance Program (NFIP). If you live near a flood-prone area, it is in your best interest to purchase a separate flood policy. A flood policy will usually cover mold and mildew that is a result of water damage that is covered under the flood insurance policy. The exception for mold and mildew under NFIP policies is damage that could have been prevented or avoided, such as failing to remediate in a timely manner, or caused from a pre-existing condition. If your home floods and you fail to clean up the water or prevent the mold from spreading, for example, then the insurance company may deny your claim.
If you’re in doubt about whether or not your home insurance policy covers mold, check your policy. Look through your home insurance policy coverages and exclusions. Check for any language pertaining to “water” and “mold”. Most home insurance policies do not cover mold damage unless it’s a result of a covered peril. Your policy, however, might have a special section dedicated specifically to mold, fungi, wet and dry rot.
If an insurance company wrongfully denies your mold claim, it has breached its contractual obligations to reimburse you for your losses. The situation is even worse when the insurance company uses bad faith tactics to avoid paying what you are rightfully owed in compensation. Our firm will aggressively represent you to ensure you get the money you are owed without any further delay by the insurance company. Our team of attorneys have decades of experience providing affordable representation to Individual and Corporate policy holders facing a wide range of denied, delayed or underpaid insurance claim issues.