Until you file a claim for mold damage in your house, you might be unaware of whether your policy even covers this kind of damage. Homeowners who have to pay a great deal of money out-of-pocket to repair mold damage can end up struggling with their insurance company over whether they are liable for the damage.
Mold Damage and Your Insurance Policy
Mold remediation can be expensive; in some cases, it can cost more than $150 per square foot to treat a home for mold, which is about 10 times the cost of simply tearing out and replacing building material damaged in some other way. Many mold claims in California have been settled for more than $500,000, with a few claim settlements reaching into the millions.
Many policies have built-in exclusions that deter mold claims:
- Mold that grows as a result of flood damage might be disallowed if the policy does not cover flood damage, a common homeowner policy exclusion for properties in flood plains.
- Some insurance companies consider mold damage a failure by the homeowner to perform expected, routine home maintenance, because mold grows a little at a time.
- Your policy might include an exclusion specifically targeting mold.
Some insurance commissioners are sensitive to the issue of toxic mold, but your local agent might not be.
Mold Inspection After Flooding
If your property is damaged by flooding, it’s important to have a mold inspection as soon as possible. Mold inspectors can detect mold that is present, as well as point out areas of water damage that will become susceptible to mold if they are not properly dried out or treated.
An inspection by a certified mold inspector confirming the presence of toxic mold might become a vital part of your insurance claim. A professional inspection is also recommended after water damage in your home from any cause.
Legal Help if Your Mold Claim is Denied
Negotiating a settlement with your insurance company requires great patience and preparation. Be prepared for a series of meetings with insurance representatives, and expect that you might have to compromise about what you feel is a fair settlement. To improve your chances, you must:
- Keep careful records of all expenses related to your mold damage, including dates and amounts.
- Track down receipts for any items within your home that were damaged by mold.
- Document every contact with the insurance company or its representatives; send registered letters to follow-up on any phone calls.
- Be sure to present your claim within the time frame and in the correct form specified by your insurance contract as well as state law.
At some point in this process, depending on the complexity of your claim, you might decide to find legal assistance. Mold lawyers are familiar with case law concerning mold claims as well as all local and state ordinances that might affect your claim.
Some attorneys will accept your case on a contingency basis, working in exchange for a percentage of the eventual settlement. It is possible to handle your mold claim by yourself, but it’s safe to say that the biggest settlement awards have gone to cases where homeowners had legal assistance. The more serious and complicated your case is, the more you are likely to benefit from legal advice.
This article is for information purposes only and is not a substitute for legal advice. If you would like to speak to an attorney who has experience handling mold-related cases, please use the form on this page to contact us for a referral.
For More Information
Your state’s insurance department is a good source of information about how mold claims are handled in your area. The National Association of Insurance Commissioners lists insurance department contact information by state.
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