Does Your Home Insurance Policy Cover Mold?

Mold strikes fear into the hearts of every home owner. It is hard to put a precise dollar figure on mold claims because your average home insurance company will not separate the claim from a water-damage claim. According to the Insurance Information Institute, 22 percent of homeowners claims will result from water damage or frozen pipes. That category includes mold remediation.

What does the average mold claim cost? You can expect mold damage claims to cost between $15,000 to $30,000. However, you want to make sure that your company will not deny your right to coverage. For that reason, it is important that you read over your homeowner's insurance policy to check for what will be covered. Your basic policy will exclude coverage when mold, fungi or bacteria causes the damage. Here are other common reasons that insurance companies might reject your home insurance claim:

• Long-term Exposure to Humidity
• Ongoing Water Leaks
• Neglected Maintenance

In most cases, home insurance companies will cover sudden and accidental peril, which includes pipe bursts. That, however, does not mean that your company will not deny you. You have to mull over the details of your policy carefully. During the early 2000s, after a slew of mold claims, most states adopted limitations surrounding mold coverage.

The average policy will cover between $1,000-$10,000 in mold mediation and repair. Your usual policy will not cover mold related to flood damage, so you want a separate policy for flood insurance, but you should ask your agent if you will need mold as an add-on. When it comes to mold coverage, cost and personal risk tolerance are the driving factors behind your decision. Your premium will vary based on the risk of where you live, but on average, homeowners will pay between $500 to $1,500 for an existing policy. The prices climb higher in humid southern climates, including Georgia.

Call Pachuta Insurance Today @ 706-769-2262
Sources:
House Logic
KRGV News 5