Mold can be found anywhere, including in most homes. Whenever people hear of mold in their homes, they think expensive restoration and denied home owners insurance claims. But before we get into mold coverage and home owners insurance, here are a few facts about mold. Mold needs moisture to grow. When there is constant moisture that goes undetected or unresolved in a home, mold starts to grow and creates a big problem for home owners. High indoor humidity, flooding or water leaks cause moisture in homes.
The source of the moisture often determines whether mold damage is covered by home owners insurance or not. We recommend you take the time to review the language of your policy, especially as it pertains to water damage. Look for mold exclusions or limitations.
Most basic home owners insurance policies exclude coverage of damage caused by mold, fungi, and bacteria, but that doesn’t mean a mold claim will be denied automatically. In most cases, if mold is a result of a covered accidental damage, such as a pipe bursting for example, the cost of mold remediation should be covered. The reasoning behind it is because technically the pipe bursting is the reason for the claim, not the mold itself. Claims are more likely to be rejected if mold is caused by neglected home maintenance such as long-term exposure to humidity, or repeated water leaks.