Your home has mold, and you’d like to know if it’s covered under your homeowners insurance policy?

Does homeowners insurance cover mold? It depends a lot on what caused the mold. If a covered peril was to be the cause of the mold, it may be covered within your policy. Please keep in mind, it is on a case to case basis and differs between insurance companies. 

For the most part homeowners insurance policies do not cover mold if it’s caused by flooding or humidity. In situations like these you may turn to flood insurance. It’s best to speak to an agent to get a clear idea of what you should do. [click here to call an agent]

If the damage was caused by a covered peril your homeowners insurance policy may cover it. If it happens to be covered they may help with repairs, cleaning and mold removal. What caused the damage is an important point to remember. 

What is a covered peril in homeowners insurance?

A peril is a hazard or an event that can cause damage or loss. A ‘covered’ peril is in reference to a type of damage that may be covered under your homeowners insurance policy. Simply put it’s something that can happen within your home that would require an insurance claim that is covered under your homeowners insurance policy. 

Covered perils are included in your homeowners insurance policy. If something were to happen in your home that created loss or damage from a peril included within your policy, your homeowners insurance would cover it. 

What are examples of covered perils in homeowners insurance?

It’s important to know homeowners insurance companies will differ between what they do and do not cover. Also keep in mind you may have a different policy than your neighbor even though you use the same company for your homeowners insurance. 

Homeowners insurance covers various hazards and often times you will hear it referred to as hazard insurance. There are perils that are not covered so you want to do as much research as you can and ask questions. 

A few examples of what may be considered a covered peril are;

• If you have a malfunctioning appliance that created a water leak

• Your hot water heater blew up and created water damage

• Firefighters came into your home and created water damage from putting out a fire

Often times there may be a cap on the limits of what damage will be covered. You might have a cap on mold removal & remediation at $10,000 for a single occurrence. This was taken from something Pat Howard wrote an expert when it comes to homeowners insurance. 

Does your homeowners insurance policy cover mold?

We went over the fact that it has to be a ‘covered peril’ to possibly to included in your home insurance policy, but what are more examples of covered perils in homeowners insurance.

• Damage caused by a car

• If theft was involved

• If it was vandalism

• Fire damage

• Lightening damage

• Faulty plumbing, air conditioners, heating 

A few examples of real life scenarios where mold repair may be covered are;

Example 1;

Someone steals a pipe from a water heater without you being aware. This create a water leak that you have no idea about. This water leak creates mold in the home that’s insured before you are able to call to get it fixed. Please keep in mind this is only an example, there’s also a chance this won’t be covered and you should be prepared for that as well. 

Example 2;

In your wash room a hose breaks and you are not aware of it. You have a new hose but there must be a defect in it. Before you are able to call and fix the issue this creates water damage which leads to mold. There is a possibility this will be covered under your homeowners insurance policy. 

Examples 1 and 2 are sudden & accidental issues. When it comes to what’s covered under homeowners insurance policies it’s usually this type of damage. Unintentional damage that you didn’t have time to fix in time. 

If you can catch an issue in time, do your best to get it fixed right away. Preventing mold before it becomes a serious issue may be the best starting point. Your home will thank you later.

Does homeowners insurance cover mold if it was caused by flooding?

More than likely your standard homeowners insurance policy will not cover mold if it is caused by a flood. For example if a flood from outside of your home created flooding that resulted in mold, you probably are not covered for this event. In a situation like this you would want to carry a flood insurance policy. 

Check the flood zones in your county to see what may be necessary for your situation. All policies are different and the county and zip code you reside in does matter when rates are involved. 

How can I find out if mold is covered in my homeowners insurance policy?

The best way to find out if mold is covered under your homeowners insurance policy is to speak to an agent. The insurance agents at Eugene C Yates Insurance Agency can take a look at your policy and let you know what is and isn’t covered. They can also help you if you need a new policy that does include related covered perils. 

You’ll find some homeowners insurance companies have limited coverage for most mold related claims. There’s also a good chance you’ll encounter an increase in premium if your homeowners insurance policy covers mold related damage. 

If you need insurance that covers mold, it’s pretty simple to get. You can call one of the agents at Eugene C Yates Insurance Agency and they can help you take care of all of the finer details. The benefit of going through a reputable insurance broker is the agent that helps you will have full access to some of the best insurance companies in the home insurance industry. This will give you an advantage with cost and allow you to shop the best home insurance products. 

What if the mold is caused by an act of nature or a flood?

Most of the time, a standard homeowners insurance policy will not cover you for flood damage. If a natural disaster was the cause of mold, whether or not it is covered really depends on what you have covered within your individual policy.

When it comes to flood damage, you’re going to want to carry flood insurance. Typical homeowners insurance policies are not designed to cover flooding. A lot of this will have to do with the area you live in as well. 

With a flood insurance policy if you run into flooding due to a severe storm or heavy rain fall, there is a chance mold removal and repair may be covered within your policy. Flood insurance is a product you will pay on top of your homeowners insurance premium. 

If you live in a flood zone that encounters regular flooding it’s definitely worth looking into. Policy premiums are affordable for the amount of coverage you receive and it’s always nice having peace of mind knowing you’re covered for such a dramatic event. 

FEMA mentions that one inch of flood water can cause up $27,000 in damages. Having a portion of that covered by your policy can help out a great deal. 

What if negligence caused the mold?

If you neglect maintenance issues or leaks that create mold, your insurance company will not want pay your claim. The insurance company wants you to take care of maintenance related issues and fix leaks around your home. Being neglectful shows you did not make an effort to prevent the mold and ultimately would be at fault. 

If you notice an issue that may cause mold, get it taken care of. It’s best to make an effort to stop any future issues. 

What if I need to file a mold insurance claim, what do I do?

First thing you’re going to want to do is contact your insurance company. A lot of times they can walk you through the process and answer any questions you may have. Have your homeowners insurance policy handy so you can go through it with the insurance representative. 

The insurance company wants you to get ahead of the issue, so if there is still water lingering try to clean it up as much as possible. Showing you’re doing your part to prevent any damage will let the insurance company know you’re being proactive in limiting any possible damage. 

After you’ve cleaned up the best you can, give the homeowners insurance company a call. 

If you still have questions regarding this topic please feel free to give us a call. We have agents standing by that would love to speak to you. They also have amazing rates for new homeowners insurance policies. [click here to call an agent now]