Insurance companies are shying away from insuring any form of damage caused by mold. Traditionally, damage caused by mold has been covered by insurance where it results from a covered peril, such as a broken pipe, a storm, or fire suppression efforts, but not where mould has occurred over time due to general wear and tear. However, public awareness and knowledge of the health hazards caused by mold have increased through the years. Techniques and services for cleaning up mold have become more complicated and costly. As a result, insurance companies are refusing to cover mold claims under existing policies and actuaries are rewriting their policy terms and condition to exclude all coverage for mold. A situation that governmental regulates, proper underwriting and competitive forces in the insurance marketplace will remedy the situation.

A complete copy of the insurance policy will explain coverage's, the policy limits for each coverage and the effective dates of the policy. Review the fine print of the policy form itself to identify what's insured, what's excluded, and what you have to do to prove your claim. Review any endorsements added on to the policy form to see if they change, eliminate or add coverage's to your policy.

Making a Claim

Most insurance claims on mold damage arise in one of two circumstances the first being when mold comes to the attention of the insured along with the discovery of moisture buildup, water leakage or water intrusion that has been present for some time but has been undetected or after a sudden flooding or leak from a plumbing system and that there has been a delay or failure to adequately dry out water damaged parts of the building.

Kinds of claims

Insurance claims are made for direct damage to the property or for damage to the neighbor's property caused due to leakage from the insured's property. If the insured is claiming for own damage it is known as a first party property claim. If the insured is claiming damage to defend a claim by another person such as tenants suing the insured for mold contamination-the insured is making a third-party liability claim to the insurance company.

Whatever the circumstances it must be clear with the insurance company as to what kinds of damage are covered by the policy and what constitutes mold damage.

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