How to Know What Sort of Mold Damage Is Covered by Your Insurance

12/4/2020 (Permalink)

What Does It Take To Clean Up Mold And How Your Policy Covers

Mold damage can occur wherever there has been standing water or high humidity, whether caused by a burst pipe or a flood. If you've discovered mold in your place of business in North Miami Beach, FL, you've probably had two thoughts: (1) how do you clean up mold, and (2) what does your commercial insurance cover? While each policy is different, there are generally some standards for businesses as it relates to mold cleanup.

1. Exclusions
Commercial insurance generally excludes coverage of damage caused from fungus. It doesn't matter how the mold got there, for the most part. If there's fungus, it's probably not covered. Don't panic, though! Read on...

2. Limited Coverage
There are a few instances in which mold damage is covered in your policy. If you have a specific cause of loss that results from a fungus, you are covered. For example, if you realize that a section of drywall is moldy, you call a mold remediation specialist to come and assess the damage, and they discover a leaking pipe, the cost of removing and replacing the drywall will be covered. Similarly, if you uncover additional damage as the inspection occurs, that will be covered, as well as testing to ensure that the mold is, in fact, cleaned up.

3. Other Riders
The specific cause language around mold insurance is a little bit hazy, so if you're unsure, call your insurance agent to walk you through your policy. Mold damage is often more fully covered under a flood coverage addendum to your policy. It's also worth looking into additional liability insurance that can cover other problems related to mold exposure at your business.
It is unfortunately common practice that commercial insurance policies are so exclusionary when it comes to covering damage caused by mold. Avoid problems in the future by understanding what it takes to clean up mold and how your policy covers you in the event that you discover mold at your business.