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Fire & Water - Cleanup & Restoration

Insurance Practices for Issues With Mold

5/3/2021 (Permalink)

Image of the SERVPRO logo Mold grows where there is a significant presence of water

Mold litigation has been a cause of concern for many insurance providers, as increased attention on mold has many contractors, property owners, and employers feeling the pressure for cleaner air quality. Mold insurance claims have risen in past years, with bodily injury complaints testing the scientific evidence on symptoms of mold exposure. Understanding how general liability insurance addresses situations involving mold is one way to determine how to approach mold remediation and personal claims of damages.

Mold Exposure Claims

Typically, claims surrounding mold include the following elements:

  1. Construction defects
  2. Maintenance delays

Because mold grows where there is a significant presence of water in the structure or high levels of humidity in the air, these reasons are seen as initiating the conditions for growth. The resulting damage to the property and any costs incurred for the professional remediation and cleanup are sometimes excluded from a general liability policy, depending on the terms of the coverage, but most often are included.

Inevitably, those looking to capitalize on a settlement may also put forth claims of bodily injury during their mold insurance claims. These are often more successful than a claim recouping the expense of remediation, as a secondary property damage claim would be opened to address those costs.

Commercial properties are at a disadvantage when it comes to claims involving mold and damage, as they are held against pollution exclusion standards as well as owned, rented, or occupied building exclusions. This can make it more difficult to pinpoint where the liability for mold issues falls, and insurance companies can choose to make honoring the general liability policy difficult.

The details of mold insurance claims are incredibly complex and best explained by a local insurance agent with experience underwriting specific policies and filing damage claims. The nature of the claim, as well as the originating source of the mold, will affect the probability of being covered.

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