Coverage for Mold with Commercial Insurance

8/27/2021 (Permalink)

Commercial insurance policies can have vague or complicated wording when they describe the coverage of mold damage and it is sometimes difficult to understand when damage is covered by mold insurance and when it isn't. However, there are some general guidelines that may simplify the issue:

• Damage due to aging and wear and tear is usually not covered.
• When mold is the result of a covered type of damage, mold may be covered.
• Sudden damages, such as fire, may cause mold that your insurance will cover.

Most of the time, mold removal is covered when the source of the contamination is already covered by your commercial property owner's coverage. Sudden accidents may include burst pipes, overflows, fires, natural disasters, etc.

Damages That Aren't Covered
If it's evident that you haven't kept up with maintenance and proper care for your building, related damages probably won't be covered. For example, if you notice drops of water gathering on a pipe, but you don't do anything about it, the resulting damages aren't covered by your commercial insurance. Regional flooding could lead to damages that aren't covered unless you've purchased flood insurance separately.

Coverage, Exceptions and Exclusions
There are several differences between residential and commercial property coverages, so the best way to determine how much coverage you have available to pay mold cleanup and mitigation professionals, is to consult with your insurance agent. Carefully read and understand your mold insurance policy, taking notice of terms such as "specified peril" and "exclusions." Some policies have long lists of exclusions, including corrosion and pollution. Sometimes, there are exceptions to exclusions.

Quick Action Prevents Spread
Ultimately, you need to take quick action when you discover mold damage. The best way to avoid further contamination is to hire SERVPRO of Boise professionals right away. Make sure you understand your commercial insurance coverage before you find mold.