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The Importance Of Understanding If Your Home Insurance Covers Mold

2009-12-15

Having mold in your home is dangerous and it can be fairly common - especially in older homes. All it needs to form is moisture and an area where that moisture can build up. Mold damages your home and puts the health of your and your family at risk. You would expect that such a danger to your home would be covered in your home insurance policy. Not so. At least not in a standard home insurance policy. Mold removal used to be something that was covered by home insurance policies when it was associated with other damage, such as a burst pipe. However, the rising cost of mold removal and the growing number of claims for it has caused insurance companies to begin excluding it from coverage.

Another reason for the reluctance of insurance companies to cover mold removal is that they argue that mold is preventable for the most part by taking care of the roof, keeping gutters clear and using an air purifier or dehumidifier in the house. If a homeowner takes care of his or her property, then the ability of mold to take hold is minimal. It would be like the insurance company paying for you to put new siding on your house because you didn't take care of the siding you had. The difference is that once mold does take hold, it can be very expensive to abate.

If you live in a flood plain or a hurricane-prone area, you'll want to check your policy and see if it covers mold removal and how much it covers. Most people don't use their homeowner's insurance all that often, but you should know that it will cover you when big problems happen with your homes Read through the declarations in your home insurance policy to see if it covers mold abatement and if it does, for how much. Most likely, you will read a specific exclusion for mold removal in the policy. If you're not sure, call your agent and ask them if the policy covers it. Also check the fine print and see how you need to prove a claim and if there are any conditions on the mold problem before it will be covered.

Getting mold coverage usually costs extra and it's something you need to ask to be included in your home insurance coverage. If mold removal is something you want to have covered, take action now so that you will be covered. Though your premiums will undoubtedly rise with the addition of mold coverage, it will be a relief for you to know that you are financially covered in the event it takes over your home.