Homeowners Insurance Coverage for Mold
Generally speaking, damage that is brought on by mold is not included in a homeowners insurance. But, a mold claim still has a chance to be covered in certain cases.
If a pipe burst causes molds to form in your home, it’s remediation cost will be covered. In this case, there is a growth of mold because of the bursting of pipe, which means that the pipe damage is the basis for the claim. Beware of home maintenance negligence such as water leakages and humidity exposure as these will only result in denied claim mold.
Many insurance companies combine water damage and freezing claims with mold claims. Basically, mold remediation is found under the category “freezing and water damage” claims in about 22% of the homeowners insurance policies.
Back in the year 2000, numerous homeowners filed for mold claims, which prompted most states to set restrictions on the coverage of mold damage. Homeowners are asked to separate their flood insurance because mold damage that is related to flood damage is not covered by most insurance policies.
Home Damage Due to Floodwater (1 Inch)
· Cleaning materials - $1,000
· Base molding - $2,250
· Drywall replacement - $1,350
· Carpet replacement - $2,700
· Lamps, bookshelves - $500
· Total - $7,800
The Importance of Additional Mold Coverage
A mold rider may be a good add-on option for your homeowners policy. As a policy holder, a rider can provide extra benefits to you, but it comes with an additional cost as well. The house value and the location are two main factors that determine your premiums.
Adding a mold rider to your existing insurance policy will cost you about 500 to $1,500 every year. If you live in humid climates such as in California and Texas, the premiums are likely to increase, as these locations tend to experience extreme cases of mold.
You can buy a standalone policy for mold if your insurer will not provide you a mold rider. This means additional expenses for you. However, the cost is well-worth it if it means taking care of your mold problems.
Protect your home from ugly mold and other forms or water damages by choosing the best insurance company. At Western Pacific Insurance, our mission is to ensure that we protect are clients and offer them policies that they can afford. Learn more about our products and services by calling our agency at (702) 932-3105 You can also request for a free quote by CLICKING HERE.