Will Commercial Insurance Cover Mold?
The owner of a building that is found to contain mold will want to know whether a commercial insurance policy covers remediation costs. Some policies provide mold coverage, while others have exclusions, exceptions, or limits. Here are several considerations that can affect coverage for mold damage.
Check for Exclusions and Exceptions
A heightened number of mold claims in recent decades have led a number of commercial insurers to exclude mold or make exceptions regarding causes or remediation methods. Some of these exceptions may include coverage for fungus growth due to
- Fire suppression system leaks
- Water damage
- Flood insurance policies that only cover mold resulting from flooding
Commercial insurance policyholders should familiarize themselves with the terms and limits of their coverage. This can help building owners decide whether they should obtain a mold insurance endorsement.
Factor in Limitations
Some policies have limited coverage, usually around $15,000, for mold. This limited coverage can help to offset the costs of:
- Tearing out contents or materials
- Replacement and rebuilding
This limit applies to single occurrences and is an annual aggregate. If this coverage is not sufficient, contact an insurer to add a mold endorsement.
File a Complete Claim
Mold damage is more likely to be covered if a complete claim is filed. This process should involve:
- Documenting damage
- Obtaining test results and estimates
- Filing a claim
- Submitting Proof of Loss
- Following up with an adjuster
Proper documentation and procedure can increase the chances of approval. If a policyholder is not sure how to proceed, he or she should contact an insurance agent.
It is possible to obtain commercial insurance coverage for mold. This peril may or may not be covered in a standard policy. Contact your insurer to discuss terms, limits of coverage, and whether additional mold insurance will be necessary to offset the costs of hiring remediation experts in Houston,TX.