Who pays for mold remediation: Me or my insurance?

A woman calling her insurance to ask who pays for mold remediation

Finding mold growth in your home is startling enough and then a thought springs to mind, “Who pays for mold remediation? Me or my insurance?”

Who foots the bill usually depends on what caused the mold. We’ll explain that in just a bit but the surest way to find out if your insurance covers mold remediation is to call your insurer.

When home insurance pays for mold remediation 

Your home insurance policy will pay for mold remediation when it’s caused by a “covered peril.” A covered peril, according to Policy Genius, is an event that damages your home or belongings that the insurance company has agreed to reimburse you if you should file a claim. The perils covered by your insurance will be listed in your policy.

Homeowners insurance normally doesn’t cover damage caused by mold or its removal. However, if the mold has happened due to something covered like a broken water heater or a pipe that has burst, they may pay for your mold remediation.

In most cases, if the water damage that caused the mold is covered, chances are it will cover at least some of the mold damage.

Many insurance companies do have a cap on the amount they pay for mold removal, however. So, you may still have to chip in. Make sure to read your homeowners insurance policy so you understand your coverage and what you’ll need to submit a claim.

When you have to pay for mold remediation 

As we just said, some insurance companies have a cap on how much they’ll pay for mold remediation. So, if the damage is extensive, you may have to pay out-of-pocket for at least some of the damage.

But who pays for mold remediation when it’s not caused by a covered peril? The quick answer is you.

Mold damage that’s caused by negligence such as not getting a leaked fixed or poor ventilation in a room that frequently becomes humid isn’t usually covered by your home insurance.

Additional coverage to consider 

If you’re worried about having coverage in case of mold growth due to an accident, make sure your policy includes coverage for things in your area that would cause mold.

If you live in an area that routinely floods, flood insurance is a separate entity that you have to request to be added to your homeowners policy. There is also coverage available for sump pump failure and water backup.

These policies may help pay for mold remediation in cases of flooding and sump pump failure. However, before adding any coverage, consult your insurance agent.

How to make sure you get the coverage you deserve 

If you want to make sure you don’t get denied proper coverage for mold damage that you deserve as well as prevent mold growth, here are a few tips:

  1. Install gutters and downspouts that direct rainwater away from your home to prevent flooding underneath your home or your basement
  2. If your home is often humid, consider using a whole-home dehumidifier
  3. Make sure your bathrooms and any other humid rooms have ventilation and exhaust fans
  4. Have your crawlspace encapsulated 
  5. Consult with your mold remediation specialist (they deal with insurance companies regularly!)

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