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Insurance Coverage

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by Michael Rubino // November 17

When you’re a homeowner, water can be one of your biggest nightmares. Polls show that the average person experiences a water damage event once every ten years. Following our mold prevention guide helps protect against a list of potential mold growth factors, but it can’t protect against things like pipe breaks and faulty appliances. 

That’s why it’s important to ensure your home or business has solid insurance coverage when it comes to mold due to water damage. 

Most people either have no insurance coverage or up to a max amount of $10,000 for dealing with mold and fungi, simply because we as a society don’t know to ask for more protection. Don’t fall into that statistic! Remediation projects can easily cost more than $10K, which means you’ll be shelling out a lot more money from your own pocket. 

Take a look at your insurance policy to see exactly what you’re covered for, and to see what gaps need to be addressed.

insurance

MOLD AND FUNGI

This specifically covers mold and fungi removal. With this policy, you’ll see a number next to “per occurrence” and another number next to “aggregate.” Aggregate stands for the maximum coverage you’re allowed to take in one year, which is where it can get sticky depending on what that number is. 

You may have coverage for mold problems but if you’re only covered for two occurrences per year (the maximum aggregate), you’ll have to personally pay for any other mold issues after that.

Our Recommendation: Increase your mold and fungi coverage to the absolute max they’ll give you so that you’re covered when water damage leads to mold growth. 

PERSONAL PROPERTY 

This covers personal belongings. If your belongings need to be replaced after water damage or if they need to be cleaned, you’ll receive money for them up to a maximum amount listed in the policy. 

Things To Pay Attention To: This policy relies on Actual Cost Value, which means the insurance company will give you money to replace the items based on an appraisal of what that item is worth that day, not how much you bought it for. Stay up to date on what your belongings are worth to ensure you have proper coverage.

LOSS OF USE 

This coverage ensures that if you can’t live in your home after water damage, you’ll receive money to stay in temporary housing or a hotel (similar to receiving a car rental with your car insurance). Be careful though! Take some time to consider if that amount would cover a place to stay for, say, six months. 

Our Recommendation: Always air on the side of caution and go with the policy that gives you more money, even if you never actually need it. That way if you can’t live at home for six months because of remediation treatment, you’ll have peace of mind knowing you’re covered. 

PROPERTY DAMAGE 

This covers water mitigation and reconstruction of your property. When you have mold, this is exactly the type of protection you need. It decreases the chance of mold and covers property reconstruction.

Keep in mind: Insurance companies don’t cover losses that they consider resulted from a failure to maintain a home. These include: 

  • Leaving a leaky faucet for an extended period of time, which leads to water damage
  • Window and door leaks that did not occur during a major storm
  • Water seepage resulting from poor waterproofing implementations

That’s why it’s important to follow our tips for preventing mold growth! 

It’s extremely important to note that if you have a current loss and you change your policy before notifying them of the loss, it would be considered insurance fraud.  You should only change your insurance policy as a proactive measure to protect yourself from the future.  There is no problem changing your policy after you’ve notified them of the loss but your new coverages would not apply to your current loss.

Still Have Questions?

A member of our team is here to help!  Click on “Get Started ➤” below to book a consultation with a member of the HOMECLEANSE team. We have a few quick questions that will help us put together a roadmap to solve or prevent all of your mold problems.

Two minutes of your time could lead to better health for you and your family.