Frequently Asked Questions about Mold and Insurance Claims
Brian Evans, PA, CPAU, FSRT, WRT, OSHA30 • January 26, 2021
Mold can be a threat to the safety of any property and to the health of occupants. At Eastern Public, we handle property insurance claims for businesses and homeowners where mold is frequently a source of concern.
We’ve assembled some questions and answers about mold that may be useful in addressing concerns when it comes to mold and your insurance policy.
When should I worry about mold?
- Most people are not aware that while the presence of mold can be problematic, it is not always threatening to health. There are over 100,000 varieties of mold present in the air as microscopic particles. In small amounts, mold is mostly harmless and is never completely removed through cleaning. Remediation is the process of returning the amount of mold to acceptable levels in a home or office when an infestation has taken over a property.
- Mold growth requires persistent dampness or moisture in a dark environment. From dark basements or closets to a boiler room, mold may be able to grow given the proper circumstances. Areas that do not receive a fresh supply of clean air may also be conducive to the growth of mold spores. We often see a mold infestation begin when drying is not completed quickly or completely after a flood or water damage, including when a fire is extinguished with water.
What should I do if mold develops?
- Proper drying and debris removal is the critical first step to prevent mold development. The first priority after significant water damage is to coordinate emergency services to mitigate that damage. When we handle claims, we coordinate all aspects of emergency services--making sure it will be effective both for the health of occupants and for satisfactory insurance coverage resolution.
- If mold has developed after a fire or flood event, remediation and insurance coverage can be more complicated. When Eastern Public is retained in cases where emergency remediation has not been effectively applied, we first recommend expert mold assessment to help establish if mold is a problem and the steps needed for proper remediation.
Will my insurance cover mold remediation?
- For most homeowners and commercial insurance policies, there are often mold exclusions. Mold that has developed over time due to lack of maintenance or repair is generally not going to be covered. But moisture resulting from a covered peril involving water, such as flooding in a kitchen from a dishwasher malfunction, water damage due to a burst pipe, or a fire that has been extinguished by water, may result in mold that, properly handled, may be covered by your insurance policy. The part of the building which has mold development must have first been damaged by water before the mold began to grow in order for most insurance policies to apply and cover the cost of abatement and remediation of the mold.
Are all mold claims covered?
- Short answer, no. There are definite mold exclusions in most insurance policies, and even certain water perils such as regional flooding which may result in mold development that will not be covered by the insurance. Likewise, if negligence or lack of maintenance caused mold to develop and spread, your insurance will likely not cover the claim. Do we want to recommend a course of action here?
What should you do to avoid having a mold claim denied?
- If you believe that you have a mold infestation that may be covered by your insurance policy, the first and most important step is to contact a licensed Public Adjuster such as Eastern Public. A Public Adjuster works solely forpolicyholders, not insurance companies. We are retained by policyholders to manage commercial and residential claims and to advocate on their behalf. When mold has developed, a Public Adjuster will investigate the circumstances of the mold growth and examine the insurance policy to determine the best path to a full restoration of the property.
- Policyholders benefit from thorough documentation, through photos and video, of all of the mold damage and, if possible, the circumstances which caused mold to develop. The more you can show the insurance company, the less likely it is that they will find grounds to deny your claim. Also be sure to Keeping detailed records of events as they unfold and any costs you have incurred will help. When Eastern Public is retained after a water damage event, we guide policyholders through each step and manage the entire claims process to ensure a full restoration of the property.
Can I add insurance coverage for mold?
- If your homeowners insurance policy does not cover mold and you would like to purchase coverage, you should contact your insurance agency to find out about adding a mold endorsement to your policy. The cost of insurance will be dependent on your location and the area’s risk of mold. In the more humid areas of the country where mold is more prone to grow, it will likely cost you more to add it to your policy than in dry, arid climates. Also, if your building is older and/or built with materials more likely to mold, that may increase the cost as well. In general, mold insurance may cost anywhere between $500 and $1500 annually.
What are the steps in filing a claim when you have mold in your property?
- Whenever you’ve had a sudden event that may be covered by your insurance, the first step is to contact a licensed Public Adjuster who is experienced in properties like yours. At Eastern Public, we specialize in handling claims for luxury and commercial properties. A good Public Adjuster will investigate damage, review policies and relevant documents, develop a strategy with a well-supported claim, and manage the entire process.
- As mentioned above, mold remediation will sometimes be covered in an insurance policy. In our initial consultation, we advise prospective clients on the best approach to their insurance claim, and whether it makes sense to hire our firm. We only proceed when we know we can bring value to the claims process. When claims proceed without a Public Adjuster, the policyholder depends on the insurance carrier to assess damage and evaluate restoration costs. In simple cases, with clear damages and standard value items or finishes, this approach may be best. As always, providing detailed documentation of the property before and after damage will help to establish correct valuation.
Contact our experienced Public Adjusting team
Mold may be covered in your insurance policy if you have added coverage or if the mold results from a covered peril. If you believe you have an insurance property claim, it is best to consult with an experienced Public Adjuster to determine your coverages and next steps.
Eastern Public is a leader in the field of property insurance claims, working primarily with luxury homes, multi-unit properties and businesses. Eastern Public is based in New York City, and serves clients across the Eastern U.S.
Contact us today for an initial, free consultation on your claim.
Our Work
News & Press
Eastern Public helps homeowners and businesses affected by Hurricane Helene navigate their property insurance claims.
The 2024 Annual Conference brought together professionals from the insurance claims and public adjusting fields for two days of knowledge sharing, certification, and networking. Held on September 12-13, the conference featured a mix of educational sessions, certification opportunities, and industry updates. The conference kicked off at TWA hotel and events center with a certification for appraisers and umpires, a valuable credential for professionals in the claims adjustment field. Robert Norton, CPCU, AIC of General Adjusting Services, and Jonathan Wilkofsky, Esq. of Wilkofsky, Friedman, Karel & Cummins and general counsel for the Insurance Appraisal and Umpire Association , led the "Appraiser & Umpire Certification Course Prep." This session provided attendees with essential preparatory knowledge ahead of the formal certification course. Norton and Wilkofsky shared their expertise, preparing participants for the complex scenarios they may face as certified professionals in their respective fields. The course provided a deep dive into practical and legal issues appraisers and umpires encounter in claims. This training served as a guide for those looking to further their professional qualifications and understanding of the appraisal process. After a brief break, participants had the option to take the certification exam, a significant step toward advancing their careers as insurance appraisers and umpires. The day wrapped up with a reception at the Sunken Lounge , generously sponsored by ALE Pro Insurance Logistics . Attendees enjoyed a lively hour of networking, refreshments, and industry discussions, setting the tone for the next day’s events. The second day of the conference took place at the 1962 Ballroom, starting early with breakfast and a robust lineup of educational presentations and discussions. Johnathan Lerner, Esq. of Lerner, Arnold & Winston, LLP , led a session titled "Insurable Interests: Navigating the Condo/Co-op and Landlord/Tenant Landscape." Lerner’s insights were particularly valuable for adjusters working in urban markets with intricate property arrangements. Katherine Barone and Jodie Papa from National Fire Adjustment Co., Inc. tackled challenging claims issues in "Advanced Claims Issues: Exploring Broad Evidence, Standard Fire Policy, and Moderation Covered Issues," focusing on the nuances of the Standard Fire Policy and broad evidence doctrine. Their session provided practical advice for their uses and addressed how they can affect the property claims process. The event gave way for brief presentations from the events generous sponsors including Archer Inventory , Total Restoration Inc. , Wilkofsky, Friedman, Karel & Cummins , ALE Pro , Lerner, Arnold and Winston, LLP , We Dry USA , Merlin Law Group , American Dry Cleaners , Strongwater Restoration and Kangaroo Packouts . Later in the morning, Matt Grossbard from Contango IT took the stage to demystify cyber insurance. As cyber threats continue to rise, understanding the coverage nuances of these policies is critical for professionals across the industry. Grossbard’s session covered a broad range of issues and provided strategies, tools, information to help educate attendees on the ways they can protect their clients and businesses from cybercrimes. During a working lunch, Jonathan Wilkofsky, Esq., provided an important ethics update for public adjusters in his session "Ethics Update for Public Adjusters," reinforcing best practices and ethical standards that adjusters must adhere to in an increasingly complex claims landscape. It covered changes to the NY Regulation 10, requirements for PA contracts, legal solicitation practices, and more. One of the most anticipated sessions was with Dennis Artese, Esq . and Grant Brown, Esq . from Anderson Kill , P.C., and Ronald Papa, SPPA of National Fire Adjustment Co., Inc ., discussing real-world case studies on claim adjustments and coverage issues following back-to-back hurricanes that affected a large complex of buildings. This provided invaluable lessons for attendees who manage large-scale disaster claims and insight into advance claims handling challenges and procedures. The NYPAA also introduced www.NewYorkBadFaith.com , a dedicated platform aimed at gathering stories from victims of insurance carrier bad faith in New York. The website will also serve as a fundraising tool to support lobbying efforts for establishing a private cause of action for consumers impacted by bad faith practices. The conference concluded with closing remarks, highlighting the significant growth of NYPAA and the organization’s continued efforts to support the professional development of New York public adjusters. The event reaffirmed NYPAA’s commitment to keeping members informed about industry trends and legislative developments. This year’s conference was a success, offering attendees a blend of practical training, critical industry updates, and opportunities for professional growth and networking. There were many new supporters and return attendees making this year’s 2024 NYPAA Annual Conference the most well attended in the association's history. Whether earning certification or gaining new insights into claims management and coverage, participants walked away better equipped to navigate the challenges of the evolving insurance claims landscape. As a leader in the public adjustment claims industry, and premiere provider of claims management services in New York City and beyond, Eastern Public, LLC was proud to have all our public adjusters attend this year's event. Taking advantage of the ongoing education and benefits provided through the New York Public Adjusters Association are just one of the ways that we ensure our adjusters remain the most knowledgeable and reliable in the industry. Contact us today to learn more about the ways that we can help you and your clients.
CEO and Adjuster Brian Evans breaks down Earth movement exclusions in insurance policies.
