Does Commercial Insurance Cover Mold Damage?

3/2/2020 (Permalink)

After a hurricane or flood hits your Baldwin County property, you don’t just have to worry about water damage. You may also find mold within the building. Luckily, your commercial insurance policy should cover the cost of mold cleanup services.

Why Mold Is So Destructive

Mold is a fungus that appears frequently in the environment. It releases spores that spread throughout nature and enter buildings.
Mold damage occurs when spores quickly grow within a property. This typically transpires when there is excessive moisture on the premises due to:

• Broken water heater
• Leaky roof
• Leaky pipe
• Poor ventilation
• High humidity
  
  

Once the mold begins to spread, it may destroy parts of your property. Mold frequently grows on materials that make up buildings, including carpet, wood and drywall. It then breaks down these items and uses them as food.
Worst of all, the mold may initially grow under floors or behind walls and ceiling tiles. By the time you notice this mold, the damage may have already been done.

Mold and Insurance

A standard commercial insurance policy usually features a fungus exclusion. However, there are exceptions to this exclusion. Specifically, your policy likely offers limited fungus coverage.
This mold insurance covers property destruction due to fungus that results from a specified cause of loss. The main mold-causing perils that fall into this category are water damage and leaking fire suppression systems.

What Is Covered

You can use this insurance money to repair physical damage caused by the mold. The insurance additionally covers the expense of tearing out walls or floorboards to reach the spores.
Addressing the mold on your own could just cause additional harm, so you should hire mold remediation specialists to handle the job. Insurance even covers the cost of testing the property to ensure the black mold cleanup is complete.
Without commercial insurance, you would be stuck paying for mold repairs out of your own pocket. Your insurance provider can give you more details about your specific policy.