Mold and Insurance Claims: What You Need to Know

7/17/2024 (Permalink)

Mold can be a homeowner's nightmare, not just due to the damage it causes but also because of the complexity it introduces into insurance claims. At SERVPRO®, we understand the intricacies involved in dealing with mold and insurance claims. Here’s a guide to help you navigate this challenging process.

Understanding Mold Coverage in Insurance Policies

The first step in dealing with mold is understanding your insurance policy. Not all policies cover mold damage. Typically, homeowner's insurance may cover mold damage if it results from a covered peril, such as water damage from a burst pipe or a storm. However, damage caused by neglect or long-term exposure is often excluded.

Key Points to Check in Your Policy:

• Covered Perils: Review the list of perils covered by your policy. Look for any mentions of water damage and how it relates to mold.
• Mold Exclusions: Check if there are specific exclusions for mold. Some policies explicitly state that mold damage is not covered unless caused by a specific event.
• Mold Endorsements: Some insurers offer endorsements or riders that add mold coverage to your policy for an additional premium.

Filing a Mold Damage Claim

When mold damage occurs, prompt action is crucial. Here’s a step-by-step guide to filing a successful claim:

• Document the Damage: Take photographs and videos of the mold and any related damage. This visual evidence will support your claim.
• Contact Your Insurer: Notify your insurance company as soon as possible. Delaying this step can complicate your claim process.
• Mitigate Further Damage: Take immediate steps to prevent further mold growth. This might include stopping water leaks or improving ventilation. Your policy likely requires you to mitigate further damage to maintain coverage.
• Professional Inspection: Engage a professional mold remediation company like SERVPRO® to assess the damage and provide a detailed report. This report will be essential for your insurance claim.
• Keep Records: Maintain detailed records of all communications with your insurance company, including dates, times, and the names of representatives you speak with.

Working with a Mold Remediation Professional

Hiring a professional for mold remediation is not only essential for effective mold removal but also beneficial for your insurance claim. Professional mold remediation companies can provide comprehensive documentation and detailed reports that insurance companies require.

At SERVPRO, we offer:

• Thorough Inspections: We assess the extent of the mold damage and identify the source.
• Detailed Reports: Our reports include findings, recommended actions, and an estimate of the costs involved in remediation.
• Expert Remediation: Our trained technicians use advanced equipment and techniques to remove mold safely and effectively.

Understanding Claim Denials and Appeals

If your mold damage claim is denied, you’re not without options. Understanding the reason for the denial is crucial. Common reasons include:

• Policy Exclusions: If mold is excluded from your policy, an endorsement might be necessary.
• Negligence: Claims may be denied if the mold resulted from long-term neglect.

If you believe your claim was wrongfully denied, you can:

• Review Your Policy: Ensure you understand the terms and conditions.
• Provide Additional Documentation: Additional evidence or expert testimony from mold remediation professionals can strengthen your case.
• File an Appeal: Follow your insurance company’s appeal process, and consider hiring a public adjuster for assistance.

Navigating mold damage and insurance claims can be daunting, but with the right knowledge and professional help, you can effectively manage the process. At SERVPRO, we’re here to assist you every step of the way, ensuring your home is restored and your insurance claim is handled efficiently. If you face mold issues, don’t hesitate to contact us for expert advice and remediation services.