Check Your Insurance Policy for Mold Coverage

2/2/2021 (Permalink)

Mold spores are everywhere, even if you can't see them.

After a water-related event like a storm, pipe burst or fire, mold can begin to proliferate in your Liberty, MO, building. Left unchecked, wet or damp surfaces may provide a breeding ground for mold within 24 to 48 hours. It's important to understand your commercial insurance policy to see if mold damage is covered.

Why Mold Is a Problem

Mold spores are everywhere, even if you can't see them. They are carried by wind and air currents and can enter buildings on clothing, shoes or pet fur. Spores will begin to grow in an environment with these conditions:

• Moisture
• Oxygen
• Food source (organic material)
• Warmth

Building materials like wood, drywall, ceiling tiles and carpet provide food sources for mold, so once moisture enters your facility, it can begin to colonize and cause damage.

Insurance Coverage
Commercial insurance policies differ in scope and size. Whether your policy covers mold damage depends on the language in your policy. It also depends on the source of contamination. The standard Insurance Services Office, or ISO, form contains a broad fungus exclusion. Mold is a type of fungus and falls under the exclusion.
There are three exceptions to the exclusion:

• If the mold results from fire or lightning
• If you have a specified cause of loss that results from mold
• Fungus that results from a specified cause other than fire or lightning (limited fungus coverage)

Under limited fungus coverage, the policy covers damage, repair and cleanup. It covers loss or damage if the mold results from a specified cause of loss. If your policy includes an endorsement for flood coverage, mold resulting from a flood is also covered.
To obtain mold insurance through limited fungus coverage, you must use reasonable means to preserve your property from further damage before and after the triggering event.
Limited fungus coverage can help pay for a professional remediation company to mitigate damage caused by mold. Check your commercial insurance policy for details.