Do homeowners insurance policies cover mold damage?
If you're like AdvantaClean, you probably get this question asked from time to time. Since we hear it every day, we do our best to educate consumers on when mold remediation expenses are covered, and when they're not.
Ultimately though, every policy is different, so we always advise our customers (and your policyholders) to check with their insurance company or agent if they have a question about coverage.
Here's what we do know, and how we educate our clients:
- Coverage depends on what caused the mold and the policy coverage you have. Molds need water or moisture to grow, but not all causes of water damage are covered by homeowners' insurance policies.
- Standard homeowners' policies do not cover water damage caused by "maintenance" problems, such as continuous or repeated water seepage or leakage, humidity or condensation problems, or landscaping or drainage problems.
- Homeowners' policies also exclude water damage caused by floods. Therefore, if one of these water or moisture problems results in mold, it would probably not be covered by your policy.
- Standard homeowners' policies do cover some types of sudden and accidental water losses, including burst pipes, and sometimes sewer back up or sump pump failure if you have that coverage. However, even if your policy covers these types of water damage, some companies have begun to specifically exclude or limit coverage for mold that results.
More Info? Regardless of whether a customer's policy covers mold claims, we advise everyone to take steps now to prevent mold growth due to maintenance issues, and act quickly when water losses occur.
If you think these tips might be helpful to your policyholders, feel free to share! Also, check out the Homeowner's Insurance Policy Checklist to help relieve the headaches of understanding insurance policy responsibilities.