Jane Dotson
If you've discovered mould in your home, you may be wondering if it's worth calling your insurance company to cover the cost of remediation. The answer depends on several factors, including the cause of the mould, the extent of the damage, and the specifics of your insurance policy. Home insurance policies typically cover mould damage if it's the result of a covered peril, such as water damage from a burst pipe, but may not cover mould resulting from neglected home maintenance or high humidity. There may also be caps on the amount that insurance companies are willing to pay for mould remediation, and filing a claim may lead to higher premiums. Therefore, it's important to carefully review your insurance policy and consider the potential costs and benefits before deciding whether to call your insurance company for mould remediation.
| Characteristics | Values |
|---|---|
| Whether to call insurance for mold remediation | Call insurance for mold remediation if it is caused by a covered peril, such as a burst pipe or a covered incident on your policy. |
| If the mold is the result of poor maintenance or neglect, insurance will not cover the cost of remediation. | |
| If the mold has been around for weeks or longer, your policy likely won't cover the expense. | |
| Cost of remediation | The average cost of mold remediation in the United States is $2,235, according to Angi, a home services website. |
| Most insurers have a cap on the amount they will pay for mold damage, typically ranging from $1,000 to $10,000. | |
| If your insurance deductible is close to the average cost of remediation, it may not be worth filing a claim as you may end up paying more due to higher premiums. | |
| If you have other damage besides mold, or a significant infestation, it may be worth filing a claim. |
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What You'll Learn
Understanding what your insurance policy covers
Coverage for Mold Remediation
Homeowners insurance policies typically cover mold remediation if it is the result of a "covered peril" or a sudden, accidental event specified in your policy. Covered perils can include water damage from a burst pipe, a leaking toilet, or a water heater bursting and flooding your basement. However, it's important to note that mold resulting from neglected home maintenance, such as continuous leaking or high humidity due to poor ventilation, is often excluded from coverage.
Coverage Limits and Caps
Most insurance companies have coverage limits or caps on the amount they will pay for mold remediation, which can range from $1,000 to $10,000. These limits may not be sufficient for severe mold damage, and you may need to pay additional costs out of pocket, including your deductible. To maximize your coverage, ensure that only the additional costs for mold remediation above the standard repair costs are applied toward your policy's mold limitations.
Timing and Reporting
It's important to act quickly when dealing with mold. Mold can start to form in as little as one day, and insurance companies may deny your claim if they believe the mold was pre-existing or caused by prolonged neglect. If you discover mold, review your policy, and contact your insurer immediately. Document the mold's location, cause, and appearance with photos and other evidence.
Optional Coverage and Add-ons
Some insurance companies offer optional coverage or add-ons that can provide additional protection for water damage resulting from sewer backups, sump pump discharge, or flooding. These add-ons can help cover mold remediation costs if the mold is caused by these specific issues. However, standard homeowners insurance usually excludes flood damage, so it's important to review your policy carefully.
Alternative Options
If your insurance policy does not cover mold remediation, you may need to consider alternative options. Small areas of mold (less than 3 feet by 3 feet) can often be safely remediated using household products, soap, and water. For larger areas or severe mold infestations, you may need to hire a licensed and experienced mold remediation company or contractor, even if it means paying out of pocket.
Appeals and Legal Advice
If your insurance company denies your mold claim, you have the option to file an appeal directly with the insurer, detailing why you believe the claim should be approved. If coverage is still denied, seeking legal advice can help you understand your options for moving forward. Remember that filing a claim may lead to higher premiums, so consider the potential cost versus your deductible before deciding to file a claim.
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Knowing when to file a claim
Secondly, it is essential to act quickly. Mould can start to form in as little as one day, and insurance companies may deny your claim if they believe the mould has been growing for a long time. If you notice mould, contact your insurer immediately and provide evidence, such as photos and documentation of the cause. Be prepared to convince them that the mould is a recent issue and that you are reporting it as soon as you noticed it.
Thirdly, consider the potential cost versus your deductible. If the cost to repair the mould damage is less than your deductible, it is not worth filing a claim, as you would have to pay the full amount out-of-pocket. Even if the cost is slightly more than your deductible, consider whether filing a claim could lead to higher premiums in the future. However, if the mould damage is extensive, it may be more sensible to file a claim than to pay for repairs yourself.
Finally, review your policy carefully. Look over the terms of your policy to see if it mentions anything about mould or if there is any way the mould you have found relates to a covered incident. Speak to a company representative if necessary to clarify the details of your policy. Understanding the limits of your policy will help you decide whether to file a claim.
In conclusion, when deciding whether to file a claim for mould remediation, consider the cause of the mould, the timing of your claim, the potential costs versus your deductible, and the specific inclusions and exclusions of your insurance policy.
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What to do if your claim is denied
Calling your insurance company about mold remediation is worth it if the mold was caused by a "covered peril", such as water damage from a burst pipe. However, if the mold is due to neglected home maintenance, such as continuous leaking or high humidity, it typically won't be covered.
If your insurance claim for mold remediation is denied, there are several steps you can take:
- Review your policy: Understand the terms of your policy and identify any clauses related to mold or covered incidents.
- Appeal the decision: Most insurance companies allow policyholders to appeal a denied claim. Gather and present evidence supporting your claim to convince the insurance company to reconsider.
- Hire a private adjuster: If your insurer denies your appeal, consider hiring a private adjuster, a professional insurance claim handler. They have experience dealing with insurers and can help get your claim or appeal approved.
- Prevent further damage: While working on your claim, take steps to prevent the mold from spreading. Fix water leaks, ventilate the affected area, and use dehumidifiers or air conditioners to reduce humidity and dry the area.
- Provide evidence: Document the mold by taking photos and making notes about what you found and where. This can strengthen your claim and appeal.
- Bring in an independent expert: Consider hiring an independent expert to verify the cause of the mold and support your claim.
- Hire a lawyer: As a last resort, if you feel strongly that your claim is being unfairly denied, you can hire a lawyer to help settle your claim. However, this option may come with significant legal fees, so it's typically reserved for major claims.
Remember, mold, especially black mold, can be extremely toxic, so it's important to address it as soon as possible. Even if your insurance claim is denied, ensuring the safety and health of your household is paramount.
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How to prevent mould
Whether or not it is worth calling your insurance company about mould remediation depends on the cause of the mould. Homeowners insurance typically covers mould damage if it is the result of a "covered peril", such as water damage from a burst pipe. However, if the mould is due to neglected home maintenance, such as continuous leaking or high humidity, it is often not covered. Therefore, before calling your insurance company, it is important to review your policy and determine whether the cause of the mould is covered.
To prevent mould from growing in your home, it is crucial to control moisture and ensure proper ventilation. Here are some detailed tips to prevent mould:
- Improve ventilation: Mould thrives in warm, damp environments with limited airflow. To prevent mould growth, improve airflow by opening windows, especially after activities that increase humidity, such as showering, cooking, or boiling a kettle. Additionally, consider installing extractor fans or ventilation in rooms without windows.
- Avoid drying clothes indoors: Drying clothes on radiators or indoors can create condensation and accelerate mould growth. Whenever possible, dry clothes outdoors or in a well-ventilated room with the window open.
- Create space for airflow: Move furniture regularly and ensure it is at least 50mm away from surrounding walls to allow air to circulate. Avoid overfilling cupboards and wardrobes, as mould can grow in areas with limited airflow.
- Keep the home well-insulated: Insulation can help prevent mould by reducing temperature fluctuations and condensation.
- Use dehumidifiers: Dehumidifiers are an effective way to reduce moisture and lower humidity, creating an unfavourable environment for mould growth.
- Clean regularly: Wipe down surfaces, windowsills, and seals to prevent mould spores from taking hold. Regularly clean sheets, furniture covers, and the inside of wardrobes and drawers.
- Let in natural light: Sunlight naturally inhibits mould growth. Open curtains or blinds during the day to allow natural light to enter your home.
- Address spillages promptly: Clean up any spillages immediately and ensure the affected area is thoroughly dried. Do not place items on damp surfaces.
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The average cost of mould remediation
The cost of mould remediation varies depending on the location, type, and size of the infestation, as well as the labour involved. The national average cost of mould remediation is $2,225, but it can range from $373 to $30,000.
Professional mould remediation typically costs $1,500-$9,000, with an average of $3,500. Mould removal costs $10-$30 per square foot, with small areas costing $500-$1,500 and extensive whole-house remediation reaching $10,000-$30,000. The cost of labour accounts for approximately 60% of the total mould remediation costs, with HVAC system cleaning being the most expensive at $3,000-$10,000.
The cost of mould remediation can also depend on the type of mould. For example, remediating Alternaria mould typically costs around $700-$6,000, while Aspergillus mould remediation can range from $373 to $7,000.
The location of the mould in the home can also affect the cost of remediation. For example, attic mould remediation typically costs $1,000-$4,000, while basement mould remediation costs around $500-$3,000. If the mould is located in hard-to-reach places or behind finished walls, the cost of remediation can be higher.
It is worth noting that some insurance policies may cover mould remediation costs, but only under certain circumstances. Homeowners insurance policies typically cover mould damage if it is the result of a "covered peril," such as water damage from a burst pipe. However, if the mould is due to neglected home maintenance or continuous leaking, it is often not covered. Most insurers have a cap on the amount they will pay for mould damage, which typically ranges from $1,000 to $10,000.
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Frequently asked questions
It depends on the cause of the mold. If the mold was caused by a "covered peril", such as water damage from a burst pipe, your insurance company may pay for remediation, but only up to a certain dollar amount. If the mold was caused by neglected home maintenance or failure to complete repairs, you will likely have to pay for remediation yourself.
A "covered peril" is an event that is covered by your insurance policy, such as water damage from a burst pipe, a storm, or firefighting efforts. It is typically something sudden or accidental that your policy covers.
If your insurance claim is denied, you can file an appeal directly with your insurance company detailing why you believe the claim should be approved. If coverage is still denied, you could seek legal advice or pay for the repairs out of pocket.
