If Your Building Has Mold, Will Your Insurance Company Cover the Cost of Remediation?

2/21/2018 (Permalink)

Mold can pose a serious threat to the overall integrity of your building, and if not caught in time, it can eat away at your building’s structure and create a potentially hazardous environment. If not dealt with within 48 hours, water damage and fungus growth may result in costly damage to your building. If this happens, you may wonder, does insurance cover the cost of mold remediation? The answer depends on two things:

1. The cause of the mold contamination
2. The language of your insurance policy

Causes of Mold Contamination

Mold claims in Jamul, CA typically arise in one of two circumstances: The building owner discovers mold at the same time he or she discovers a moisture problem, such as a leaking pipe or a leaky roof; or the building is subject to a flood, burst pipe or other sudden plumbing issue. Generally speaking, most insurance agencies won’t cover fungus growth that is the result of long-term leakage, water intrusion, moisture buildup, deferred maintenance, poor repairs, construction defects or normal wear and tear, but they may cover damage caused by sudden events for which you took proper measures to protect against, such as floods or plumbing system failures.

Policy Language

Unfortunately, most building insurance policies contain a laundry list of exclusions for damage caused by mold. For instance, most policies won’t cover the cost of damages if the mold was a result of normal wear and tear, poor workmanship and materials, construction defects, corrosion, pollution or wet rot. Some policies may cover mold that develops as a secondary problem from covered water damage. What type of water damage is covered and what types are not is a whole other dilemma you need to sort out with your insurer.

Mold growth can wreak havoc on your building, which is why it is best to invest in a mold insurance policy. Mold coverage is designed to do exactly what its name implies: cover the cost of damages caused by mold. If you want to protect your investment, talk to your Jamul, CA insurance agent today about devising a policy that covers damages caused by mold.
Visit http://www.SERVPROspringvalleyjamul.com for more information on mold.