Mold is a slow growing organism that forms on plants, food and other matter. You will find most property and liability insurance policies include an endorsement specifically limiting coverage for Fungi, Wet or Dry Rot or Bacteria.
Mold damage used to be covered by property insurance policies, like homeowners policies, if it resulted from another covered loss. A few years ago, insurers slipped an exclusion into their policies for all types of mold loss but softened the impact by including a nominal amount (usually $10,000) of coverage for mold damage to property and $50,000 for liability to others. Higher limits are usually available for an additional premium but most insurance buyers are not even aware of this option.
Mold damage following a water damage loss or the breakdown of mechanical equipment could result in a serious loss. Increasing the “mold coverage” limits on homeowners, tenant-homeowners, dwelling and other property insurance policies should certainly be considered.
This type of coverage, mold damage resulting from another covered loss, used to be free and was subject only to a policy’s limit. Now you have to pay for it and specific limits will apply but it remains an important insurance program consideration.
Great question! After the great media "black mold" scare a few years back (yes, black mold is bad, as is most mold and fungi) most insurers quietly cut that coverage out of their homeowners policies. That is especially true in the humid southern states, where mold is difficult to prevent. There may be a small amount of damage that is covered in your specific policy, so it is well worth your time to contact your agent and find out. If your policy has been in force for many years, it may also be a covered item, if the company hadn't amended your policy along the way. Contact your agent, and they can tell you for certain. Good luck, and thanks for asking!
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Mold is a slow growing organism that forms on plants, food and other matter. You will find most property and liability insurance policies include an endorsement specifically limiting coverage for Fungi, Wet or Dry Rot or Bacteria.
Mold damage used to be covered by property insurance policies, like homeowners policies, if it resulted from another covered loss. A few years ago, insurers slipped an exclusion into their policies for all types of mold loss but softened the impact by including a nominal amount (usually $10,000) of coverage for mold damage to property and $50,000 for liability to others. Higher limits are usually available for an additional premium but most insurance buyers are not even aware of this option.
Mold damage following a water damage loss or the breakdown of mechanical equipment could result in a serious loss. Increasing the “mold coverage” limits on homeowners, tenant-homeowners, dwelling and other property insurance policies should certainly be considered.
This type of coverage, mold damage resulting from another covered loss, used to be free and was subject only to a policy’s limit. Now you have to pay for it and specific limits will apply but it remains an important insurance program consideration.