Homeowner’s Insurance Spotlight: Mold

Insurance and Mold

Now that you’re the neighbor mold maven, let’s add to your arsenal of knowledge. If you have mold in your home due to water damage, will your homeowner’s insurance cover it? This depends on your specific policy, but here are some important items to consider.

First of all, if water has damaged your home before it comes into contact with the ground, then it is considered water damage that would be covered by your homeowner’s insurance. However, standard policies usually do not cover mold due to ‘maintenance’ problems, such as repeated seepage, humidity or drainage issues. Although most sudden or accidental water damage is covered, some policies have begun to retract or limit their coverage on mold.

Even if your policy does cover mold remediation, there are likely limits placed on the expenses. Mold damage significantly devalues your home, which will make it very difficult to sell. Make sure to routinely check your pipes and areas where moisture and temperature conditions may not be easy to observe. Cue Wally Home! Monitoring your home’s conditions can prevent mold from growing, thus, no insurance debacles. Make sure to read your policy to how it covers mold damage; regardless of your coverage, prevention is the best method!

  • TIP #1: Maintain your rain gutters by cleaning them often and thoroughly. Make sure that they let the water flow away from your home.
  • TIP #2: If you’re remodeling or building your home, invest in mold-resistant materials.
  • TIP #3: Install all-season attic and crawlspace ventilation systems.
  • TIP#4: Make sure your landscaping slants away from your home’s foundation.