The Tricky Area of Mold Insurance

3/24/2021 (Permalink)

Mold damage in Gothard, CA building.

If your company in Gothard, CA, is unlucky enough to face a mold infestation, you might assume your commercial insurance policy will cover damages and expenses. Not so fast. Unfortunately, mold insurance claims can be a bit tricky. The fungus exclusion, a standard feature in most commercial and residential policies, states that coverage for mold and mildew, wet or dry rot and bacteria are not included. That might seem straightforward enough (as well as disappointing) until you consider the fungus exception. This provision of most policies does provide coverage for a mold claim under certain circumstances.

Clarification of the Fungus Exception

If the presence of mold on your property is the result of an event that is covered in your policy, you could be covered. Common situations that result in mold and that are normally covered under commercial insurance include the following:

• A leaky pipe
  
• A leak from fire fighting equipment such as a sprinkler system
  
• An unexpected moisture problem
  
  

In situations that are covered, you still have responsibilities with mold insurance claims. You must act quickly to minimize damage and do everything in your power to address the situation. In terms of liability coverage, a property owner faces an uncertain situation when it comes to lawsuits filed by building tenants. As always, you should consult with your insurance agent at least once a year to go over policy changes.

Explanation of Mold Remediation

A professional mold restoration company performs many services related to mold removal. It can test to identify the presence of mold in a building. It can kill the mold and remove it from the property. Trained technicians can clean surfaces contaminated with mold, and restore areas that have been damaged by mold growth. An experienced company can offer assistance with mold insurance claims. A reputable mitigation company is Here to Help restore your company to its original condition before a mold outbreak.