In New York, it has been witnessed that mold can grow after water clogs or flooding due to the moisture and humid conditions. To combat this situation, you can easily apply for a home insurance claim, but the policy typically covers mold damage only if it occurs suddenly or accidentally.
Mold can be hidden beneath the wall, ceiling, or floor, and you might accidentally discover it. To apply for home insurance coverage for a mold claim, you have to follow a step-by-step process. So, let’s get through the details.
Why does mold occur?
Mold can occur for several reasons, primarily water damage. If the pipe or drainage system ruptures or leaks, if the appliances malfunction, or if the toilet overflows, or if there is a sudden fire, the fire extinguisher uses water to extinguish it. Mold can also occur due to an act of nature, such as water coming down the roof during a storm or rain, or it can also be caused by a flood.
What does mold removal coverage include?
If you have applied for a homeowner insurance claim for water damage and mold, then its coverage is quite limited, and the policies usually vary from one company to another. The typical amount ranges from $1,000 to $10,000 for occurrences, and you also have to meet their eligibility criteria to apply for the claim.
Some add-ons can help you increase the amount of mold protection coverage, but they also come with an additional cost. The two most supplementary insurance options are:
- Water backup coverage – If the mold occurs after a water backup event when the drain, sewer, or sump pump overflows.
- Hidden water damage coverage—When you cannot detect the leakage hidden behind the cabinet wall or flood, which can cause extensive damage over time, this policy usually includes only mold removal.
Conditions home insurance does not cover mold damage
The insurance won’t cover mold damage if the homeowner’s negligence causes mold growth. Also, situations such as flooding, neglecting broken seals or damaged pipes, lack of ventilation, and build-up of humidity in the basement or bathroom are included in the exclusion policy.
How do you apply for a homeowner insurance claim for mold?
Here is a step-by-step process to file a claim for mold with a home insurance company:
- First, find the burst pipe or active water leakage and stop it immediately. Turn off the home’s water main and shut off the water supply to remove water logging. Run a dehumidifier to dry the area.
- Report the incident immediately, either online, in person, or over the phone, so that an adjuster can be assigned to process your claim. Before applying, you must inquire does renters insurance covers mold damage.
- Take pictures and videos of the mold growth and document every corner damaged due to mold. It should also include the structural and home belongings. This documentation is required to support your claim.
- Hire professionals to clean the damaged area, and always wear gloves, a respirator, or goggles when exposed to mold, as it can cause respiratory problems.
- Keep all the receipts for reimbursement. You can only get approval to enter the property after a complete safety check.
Summing it up
If your claim is denied, you can seek a second opinion and file a formal appeal with the insurance company. Alternatively, you can speak with an attorney to decide your next best option.
