Mold and Your Homeowners Insurance: Things You Should Know

Whether a homeowner has finally saved up enough money for the down payment or has finally paid off their abode, protection is important. With a plethora of uncontrollable ways in which damage can affect a house, possessing a diverse homeowner’s insurance policy is a small price to pay considering the money it can save in the long run.

While many associate home insurance claims with catastrophic events such as hurricanes, floods, fires and tornadoes, there are other dangers that can sneak up on homeowners such as mold, fungus and wet rot. These progressive problems can add up to thousands in repair costs for unsuspecting homeowners.

Do You Need Mold Insurance?

While any home is susceptible to bursting pipes and similar plumbing malfunctions, old homes are particularly at risk for this type of problem. Therefore, homeowners of older dwellings should consider purchasing a policy covering mold. Even when the majority of the water resulting from the burst pipe is removed, there is still moisture left behind, and it can often be just enough to produce mold. While the intricate process of mold remediation can be performed, it costs thousands, and many homeowners are not prepared to foot the bill.

A pipe burst is an obvious issue to alert the homeowner of the potential risk of mold; however, this common problem can arise over time. For example, if the kitchen sink is slowly leaking, a breeding ground for mold is present. Homeowners should be aware of these types of risk factors as they normally are not covered by mold insurance since the policy owner was negligent in upkeep. Slow mold growth is a particular issue in southern climates as even humidity can cause growth.

What is In Your Policy

A large number of homeowners purchase their insurance simply because their mortgage company requires it. They fail to understand the importance of carefully reading their policy to understand their coverage, often primarily concerned with the premiums. While they may see that mold is covered, they often find that certain circumstances are not eligible for mold remediation coverage. Insurance adjustors look for the source of moisture when determining payouts. If, for example, the mold originated from a leak, many insurance policies will not cover the damage. In this case, separate insurance must be available such as flood insurance.

Insurance policies should be carefully reviewed so the homeowner understands the details as the lingo used can be confusing. It is worth the time invested to contact the insurance provider to help clarify any confusion so the homeowner accurately understands the provisions within their policy before problems arise. In the event that the homeowner discovers that mold is not covered or not to the degree desired, they can take the proactive steps in purchasing additional coverage to protect them in the event this common problem strikes.

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How Much the Extra Mold Coverage Can Cost You and Is It Really Necessary

You get what you pay for, and mold coverage is not an exception. The coverage can cost in excess of $1000 annually. In areas of high humidity, these premiums tend to rise. While homeowners often decide it is fiscally responsible to avoid this seemingly unnecessary expense, they fail to realize the increased cost is due to the higher possibility they will be affected. If mold creeps in, the cost for remediation can be too much to afford.

Those who have not yet invested in mold insurance should consider their risk factors against quoted premium costs. The peace of mind it provides is well worth the money spent.

The author, Helen Marino, works with Moldbusters.comĀ as their content contributor. If you want, you can connect with Helen on Google Plus.

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