Limited Mold coverage in Homeowners Insurance?

Limited Mold coverage in Homeowners Insurance?

2. How can homeowners avoid additional costs related to mold damage not included in Homeowners Insurance?

Limited Mold Coverage in Homeowners Insurance

Many homeowners are under the false impression that all mold is covered by their homeowner’s insurance policies. Unfortunately, this is not always the case. Mold coverage is typically limited and may vary depending on the insurance policy.

Types of Mold Covered

Homeowners insurance policies typically only cover mold resulting from specific named events. These events may include sudden and accidental water discharge from broken pipes, fire suppression systems, or appliance overflow. Typically, mold caused by energy-deficiency systems that require routine maintenance are excluded from coverage.

Limitations

Even when mold is caused by a covered event, there are often limits placed on the coverage. For example, the insurance company may require a certain amount spent to prevent further mold growth. Additionally, there may be limits placed on the amount of money paid per incident of mold. Some policies also limit coverage to a certain type of mold.

Additional Coverage

In some cases, homeowners may need additional coverage for mold related damages. One option is to purchase an endorsement on the insurance policy which adds mold coverage. Alternatively, homeowners may be able to add a rider for additional coverage. Speak with your insurance provider to find out what options are available.

Take-Aways

Homeowners should understand that limited mold coverage is typically included in a standard homeowner’s insurance policy. This coverage usually applies only to specific situations and may have limitations. If further coverage is needed, homeowners may need to purchase an endorsement or rider on their policy. Doing research and understanding your insurance policy can help prevent costly surprises in the event of a mold-related incident.

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