Does Your Insurance Cover You For Mold?

Does Your Insurance Cover You For Mold?
A recent news report highlights the financial problems that mold will cause for many home and business owners dealing with the problems caused by Hurricane Sandy. According to the report, most people are not covered for mold damage and could face costs upwards of $30,000 to fix the damage.
In a recent report on Sandy’s destruction, Citi strategist Jeffrey Berenbaum states that “mold damage could likely be the largest risk to properties that remain flooded for weeks.”
The Illinois Department of Insurance states that coverage of your mold damage will depend on two key factors:
1. What caused the mold.
2. What policy coverage you have.
According to Bernard L Fontaine, Jr., M.T., M.Sc., CIH, CSP, Managing Partner of The Windsor Consulting Group, Inc. based in South River, NJ:

“Most homeowners and businesses don’t seek to have riders placed on their policy. Many basic policies don’t have any coverage for mold as a result of property damage. This is because it adds cost to the premium and many insurance brokers don’t bring up this issue unless requested by the policy holder. On the other hand, many insurers now limit the coverage to $5,000 to $10,000 with a variable deductible. Many homeowners don’t believe they will ever have a mold issue and choose not to add the coverage and insurers don’t cover mold growth as a result from surface water damage to the property. Homeowners and businesses need to be vigilant about what is and is not covered in their policy.
With this in mind, it is important to understand that many insurance companies are trying to limit their exposure to mold claims and will in fact exclude mold claims completely. In the case where you do have a policy that does cover mold, there will most likely be a limit placed on how much is covered. It is very important to read your policy and ensure that you specifically ask your insurance agent and completely understand if you have mold coverage and for how much.
The video below highlights an instance where a home owner is battling their insurance company over mold issues. In this case, the homeowner thought they were covered, but to their surprise, they were not. The case is currently in the courts.

Further Reading
Flooded…But Denied Insurance? Don’t Lose Hope!
Hurricane Sandy Causes Mold Risk for Flooded Areas
Sandy Leaves Behind the Threat of Asbestos Exposure
Flood Alert: Key Action Steps & Information!
What Should I do if I Find Mold?
Attention Saskatchewan Residents: PDAP Can Help!
Don’t Spray Mold!
What Causes a Basement to Smell Bad?
Mold, Not Just a Health Problem, But a Structural One Too!
Sewer Backups Part 1: Causes and Prevention
Sewer Backups Part 2: Action Steps
Why Do We Need Sump Pumps?
Flooded…But Denied Insurance? Don’t Lose Hope!
What to Expect From a Mold Inspection
Mold Emerges As Problem From Flooding
Why is Mold a Growing Concern?
Seven Tips To Detecting Mold
Mold in Your Basement
Do You Know Where Your Water Main Valve Is Located?
What to do when you’ve identified a mold concern?
The Longer You Wait…The Worse It Gets!
How Does Mold Get Indoors?
What’s In Your Flood Water?
What causes Mold growth?