Key Points About Mold Insurance Coverage Every Business Owner Should Know

6/14/2019 (Permalink)

Some policies may provide limited protection against mold, you should carefully review the details of your current mold insurance coverage.

Because of the prevalence of mold spores in the environment, it may be impossible to deem any commercial building in Knoxville, TN, mold-free. To complicate matters, mold thrives in moist environments and can grow behind walls and under flooring. While commercial insurance may protect your property from a variety of perils, you may be surprised to learn that some policies may provide limited protection against mold. For this reason, you should carefully review the details of your current mold insurance coverage.

Common Exclusions

Some insurance policies list numerous exclusions that may cause the company to deny a mold damage claim. Common exclusions include the following:

• Moisture intrusion resulting from a construction defect
• Damage caused by a long-term leak
• Problems arising from deferred maintenance
• Leaks resulting from normal wear and tear

As a result, it’s important for you to promptly address any visible leaks and maintain HVAC equipment and plumbing systems according to manufacturer recommendations.

Annual Policy Limits

Commercial insurance companies can also write policies that include low annual policy limits. In the event of serious mold contamination, an insurance payout as low as $5,000 may not adequately finance mold remediation efforts, forcing you to pay additional expenses out-of-pocket.

Specified Perils

Another potential policy detail that may null a mold-related claim is the requirement that you prove that a qualifying peril caused the mold contamination. Meeting this condition may be particularly difficult if your maintenance records and other vital documentation are not complete and well-organized.

Flood Damage

Mold contamination resulting from flood damage is another possible coverage limitation. Many policies may not cover mold damage resulting from a flood unless you have supplemental flood coverage.

Understanding Your Policy Is Vital
The specific language of commercial insurance policies varies. To ensure you are adequately protected against mold contamination, it’s essential that you review your coverage and identify any exclusions that may cost you significant out-of-pocket expenses if a mold problem arises.