Yes, a standard homeowners policy with State Farm Home Insurance includes coverage for up to $10,000 to identify and repair any mold damage, any costs over this amount will have to be paid for by the homeowner.
Is mold remediation covered by other homeowners insurance?
Some homeowner insurance companies offer coverage for mold removal or remediation when it has been damaged by water damage from sudden accidents or emergencies like a burst pipe.
However, because mold remediation can be so expensive, most insurance companies have put in measures to reduce their risk of paying the extortionate amounts out to their customers.
This is why people who live in humid climates find it difficult to get coverage for mold remediation as their homes are prone to experiencing mold growth. Things like your bath overflowing, leaking, or failing to attend to a water appliance that has been leaking for your years will not permit you coverage of your home.
Most home insurance companies will offer between $1-$10,000 limit for their mold coverage, but mold remediation for an entire home can cost upwards of $25,000 sometimes, so the customer will need to find the funds to cover those costs elsewhere.
Why won’t my home insurance policy cover my mold problem?
If you’ve had a water leak for years and failed to sort the problem out and now that area has developed a mold infestation, then you will not be entitled to coverage as that is neglect on your behalf and it does not count as an accident or emergency.
If you live in a humid area and you have failed to take the right precautions e.g using a dehumidifier in areas of your home where moisture levels are high, then you will not be entitled to coverage as that is your responsibility to take action against mold growth.
Unfortunately, due to the high number of storms and flooding that happens, home insurance companies are unable to offer policies that cover mold growth due to water damage from these natural events.
However, things that are out of your control like your water heater bursting or your dishwasher or washer malfunctioning and leaking water everywhere will entitle you to coverage if mold has started to grow due to this malfunction.
If you were unfortunate to have a house fire in your home and mold has appeared from where the firefighters have used water to extinguish the flames, then your homeowner’s insurance should cover you.
The best way to find out is by thoroughly talking through what is and what isn’t covered by your insurance policy with your provider, then you will not be left in the dark if something did happen.
What is mold buyback coverage?
If your insurance policy doesn’t offer mold coverage, then there may be another way around to getting coverage. Some home insurance companies offer a ‘buyback’ scheme for mold claims, which lets the customer pay more money on their policy in exchange for limited mold coverage.
However, there are some insurance companies that will cap the amount that they offer for this coverage or only pay for certain parts of the process like testing or the clean-up, as mold remediation can be very expensive.
If your insurance policy doesn’t offer mold coverage, then the best thing to do it so take preventive precautions like ventilating your home properly, using dehumidifiers in areas like the basement, installing exhaust fans in the kitchen and the bathroom.
Is mold removal expensive?
Yes, mold removal can work out to be very expensive especially when structural damage is involved. The price of mold removal will depend on the extent of the damage and the size of the area that is affected.
Smaller areas of your home like crawl spaces, attics, walls, and ducts may only cost between $500 to $6000 to do mold remediation, however, if walls or ceilings need to be taken down due to excessive mold growth then you could be looking at paying at around $30,000 altogether to get the mold removed and to get your home back to normal.
These costs are so high because they’re performed by licensed professionals who put their health at risk by working in contact with toxic mold every day.
These costs are so high because they’re performed by licensed professionals who put their health at risk by working in contact with toxic mold every day.
These jobs can take weeks to execute and there are a lot of steps taken to ensure that the mold is removed safely and preventive measures are put in place.
