For both first time homeowners and longstanding ones, homeowners insurance is exceptionally important. A single catastrophic event such as a fire, hail, or hurricane such as Super Storm Sandy can cause serious damage or even destroy an entire home. Even gradual problems like a settling foundation or moisture infiltration that causes mold growth to occur can result in expensive repairs and the need for remediation. Any single problem can cost a small fortune to fix, which is one of the primary reasons homeowner’s insurance is so important to maintain.
Do You Even Need Mold Insurance?
Mold growth is a serious problem in many local homes. Not only can the growth of mold result in structural damage to the walls, floors, ceiling and foundation, but the spores can cause health problems ranging from allergies to serious respiratory problems. The awareness of mold in homes has grown, and many homeowners wonder whether insuring their homes for fungal growth is even necessary. Mold growth is especially a problem in older homes, where the spores have had more time to spread and take hold. An event such as a burst pipe can flood the entire basement or lower level of a home, resulting in fungal growth. Even the careful removal of the water can leave enough moisture behind to fuel the growth of fungi. Mold can also grow slowly due to a leak around a bathtub, shower or sink. Unbeknownst to the homeowner, the water can drip into the walls and flooring, providing an ideal environment for fungal growth. Slow mold growth is also possible in humid southern climates or in locations with a proximity to the ocean or a large lake, where humidity levels tend to be higher. In a sudden event such as a burst pipe, most homeowners policies will cover repairs and remediation. However, in the case of a slow leak, insurance typically will not cover mold removal as the situation is likely to be considered negligence on the part of the property owner.
Read Your Policy Carefully
Homeowner’s insurance policies spell out in great detail when mold remediation is covered and when it is not. The first step is to read each word of the policy. If the policy is confusing, a call to the insurance agent can clarify the situation. Mold requires moisture to grow, and it is the source of the moisture that typically determines whether or not fungi removal is covered. When a flood of water from the outdoors enters the home such as from a natural disaster, a regular homeowner’s policy will not cover the damage. A special Flood Insurance rider would be needed to pay for this type of repair. Homeowners can also add Mold Riders to their coverage, which may be more expensive in humid and flood-prone areas of the country.
The Extra Mold Coverage
Whether or not extra mold coverage is necessary depends on the risk tolerance comfort of the homeowner as well as the likelihood of an event that would promote the growth of fungi. The cost of the extra insurance coverage for mold is usually the deciding factor for most homeowners. A homeowner can expect to pay from $500 to $1500 per year for extra coverage to repair mold damages. Depending on the extent of mold growth and the location and size of the area affected, the remediation could cost several thousand to more than $30,000. The costs associated with mold repairs include replacement of sub-flooring and flooring, baseboards and molding, drywall, wood and upholstered furnishings, paint, paneling, wallpaper and supplies used in the repair process. Heating, ventilation and air conditioning units may also need to be repaired or replaced, as the mold can set up shop in the air ducts and vents, causing problems throughout the entire house. Homeowners could also incur additional costs in fixing the source of the moisture problem and for the installation of vapor and moisture barriers.