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Mold can be an invisible health hazard that needs to be addressed at a cost. The average cost of mold removal ranges from $1,108 to $3,392, according to HomeAdvisor, but can be much higher for larger projects.

Unfortunately, home insurance does not always cover mold damage or mold removal. Mold is covered by your homeowner’s insurance on a case-by-case basis, depending on the cause of the mold and the extent of the damage.

Here’s what you need to know about home insurance and mold:

Does home insurance cover mold?

Homeowner’s insurance may cover mold if the mold is caused by an accident, event, or accident (damage) that is included in your home. Events that may be offered under the standard policy, include:

  • Mold due to broken pipes
  • Mold due to broken equipment
  • Mold due to a broken water heater
  • Mold due to water damage caused by fire

Whether or not you need to file a mold removal lawsuit depends on the severity of the problem. Sometimes, mold removal can be a DIY job. If you forget to ventilate your bathroom more than once and mold grows on the bathroom tiles, cleaning with bleach and ventilating the bathroom forward may be enough to solve the problem.

But let’s say that mold has grown on the ceiling, carpet, or walls after a pipe burst or the washing machine leaked. In such cases, the only way to solve the problem would be to hire professionals. A full mold remediation project may include inspection, mold removal, and cleaning of the site. In this case, the insurance may help pay for the repairs up to the covered limit.

Remember: Although mold removal is covered by insurance, repairs to the appliance that caused the mold may not be covered. For example, if your dishwasher breaks and causes mold to grow on the kitchen floor, the cost of repairing the dishwasher may not be included in the insurance premium. A home warranty can help cover the cost of repairing or replacing a broken device.

Reducing mold damage

Insurance limits for mold are usually around $5,000, according to Experian. So, even if your policy covers mold, it is possible that the repairs may exceed the limit, and you will be responsible for paying some money out of pocket.

Since process specifications can vary, check the fine print to determine your mold limits. In some cases, insurance carriers may allow you to purchase mold supplements at an additional cost. Researching your options can help ensure that you are protected in the event of an accident.

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When does home insurance cover mold?

Mold removal is not covered by insurance due to the accident being excluded from your insurance. Situations that home insurance policies usually do not cover mold include:

  • Improper handling: If mold grows slowly over time because you don’t do routine maintenance, such as fixing the drain or properly sealing your windows, the damage claim may be denied.
  • Ignoring the owner: If mold is growing because the homeowner isn’t taking steps to reduce humidity, such as running the A/C or dehumidifier in the summer, remediation costs can be prohibitive. In moist, dark environments, mold can spread and destroy everything in its path. This is why it is important to maintain humidity in the home, especially in humid areas such as your bathroom or laundry room.
  • Flooding: Homeowner’s insurance does not cover flood or mold damage from natural events, such as hurricanes. To protect yourself from flooding, you should purchase flood insurance separately.
  • Sump pump failure: Sump pump and water backup failures are often not covered by homeowner’s policies, and mold that results from such failures may not be covered.
  • Faulty constructions: If a defect in your home or the materials that built the home damaged the mold, mold removal may not be covered.

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Other options for covering mold

Buying extras can help protect your home and belongings from mold and other water damage. Here are some analysis methods to consider:

  • Sump pump and water backup: Adding a sump pump and water reservoir to your plan can protect you from mold damage caused by a sump pump overflow.
  • Mold tablets are recommended: Insurance providers may offer mold endorsements that increase your protection against mold-related incidents.
  • Flood insurance: Flood insurance may not be required but may be important to purchase to protect you even if you don’t live in a valley. However, even flooding can have limited mold coverage, so make sure you read carefully. You can buy flood insurance through National Flood Insurance Program or private insurance.

How to write a mold insurance policy

Writing a mold inspection is similar to filling out a homeowner’s insurance policy. Although the policy and each insurance provider may differ, you should do the following:

  • Record the damage. Take photos of the mold to keep a record of the damage.
  • Prepare temporarily to prevent mold growth. Insurance requires homeowners to make short-term repairs to reduce future damage caused by incidents. This may include turning off the washing machine and installing a dehumidifier to reduce mold growth after a spill.
  • Contact your insurance provider. Call the helpline number to file a complaint or fill out a complaint form online. When filling out a claim, you may need to provide information, such as the date the incident occurred, and the amount of damages.
  • Arrange transportation. The insurance agent may call you to discuss the claim and send an adjuster to assess the damage.
  • Review the resolution. The insurance provider will notify you of your reimbursement. If you are not satisfied with the offer or want to object, you can object.
  • Receive your payment. You will receive payment for the sentence, which can go directly to the contractor who repairs the damage.

What to do if your mold infestation is denied

The most common reason a claim can be denied is if an issue that was not covered or your negligence caused the mold growth. If you believe an application is wrongly denied or the payment is less than expected, you have options.

First, you can dispute the results with the claims department of the insurance provider. Explain why you disagree with the termination or denial and provide evidence to support your request. If disputing the claim with the insurance provider doesn’t work, you can take the dispute to your state’s insurance office by filing a complaint. The government agency will reach out to the insurance provider and investigate the matter.

To avoid any unpleasant surprises in the event of an accident, it is always a good idea to go through your insurance policies to understand the terms. If you find gaps in coverage, you can contact your insurer for additional coverage or shop around for coverage from other insurance providers. At Credible, you can quickly compare homeowners insurance quotes from multiple insurance carriers.

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Disclaimer: All insurance related services are provided through Young Alfred.

About the author

Taylor Medina

Taylor Medine is a trusted personal finance professional. His work has been featured on Bankrate, Experian, The Balance, Business Insider, Credit Karma, and more. He is also the author of The 60-Minute Money Plan, a self-published primer on budgeting for budget-haters.

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