Mold Damage Claims

Understanding Mold Exclusions

Due to the expensive nature of mold remediation, insurance companies have begun to exclude coverage for mold mold. A lot of insurance policies exclude mold but then add it back in up to a certain limit such as a $10,000. In this regard you must check your policy to see whether you do have coverage for mold and to what extent. It is important to understand that mold is usually only covered if there’s first a water loss that is a covered peril. If humidity is building up due to a broken air conditioning unit,or some other reason that is not covered, then you may not have coverage for mold. Usually mold is only covered if there is an accidental discharge of water for the plumbing system or a wind loss has caused water to enter your house. In this regard, it is important to understand the cause of the mold. Hiring professional leak detection services and mold assessors is absolutely necessary to prove that your mold loss is covered.

For example, mold may be covered if a burst water pipe causes mold to grow and is considered an ensuing loss.

In determining whether mold damage is excluded under an ensuing loss provision, courts often look to see if mold is the cause of damage or the result. This is a fact-specific question that generally must be analyzed according to the law in the jurisdiction where the claim arose.

Some policies are expressly written with an “absolute” mold exclusion. An “absolute” exclusion means that no matter how the mold may come to be, the insurance company will not pay for the damages.