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Fire & Water - Cleanup & Restoration

The 3 Exceptions To Mold Exclusions in Commercial Insurance

12/17/2020 (Permalink)

Mold growth behind wallpaper Mold isn't always visible

Finding mold within your commercial property in Woburn, MA, is an unpleasant experience. It can result in extreme mold damage, particularly if the issue went unnoticed for awhile. If damage occurs, your most pressing concern is likely funding for remediation experts. Most insurance companies widely exclude fungus-related issues. However, there are usually three exceptions to this rule. Here is each one.

Limited Fungus Coverage

This exception displays the importance of maintenance. If your mold didn't arise from neglect, you're more likely to be covered. Limited Fungus Coverage refers to fungus caused by specified causes of loss, or hazards named by your policy. These are some examples of such causes:

  • Vandalism
  • Water damage
  • Sinkholes
  • Windstorms

Essentially, these are causes that you didn't create. This, combined with proof that you did your best to fix the problem, is likely to gain you insurance coverage.

Fire and Lightning
Similar to the first exclusion, but far more specific, fungal growth resulting from fire or lightning is generally covered. These disasters are almost certainly not your fault, so the issue doesn't stem from lacking maintenance. As long as you provide evidence of the cause, this reasoning will probably sway your commercial insurance provider.

Specified Resulting Damages
Mold isn't just an issue by itself. It can cause problems in turn. If a damage named in your insurance policy is triggered by mold, then the remediation process will likely be covered. However, it's important to make sure that the fungus wasn't caused by your neglect. This will make your argument for mold insurance coverage murky at best.
Learning what mold issues your insurance covers is essential. Most providers aren't known for assisting with mold, so making a compelling case is essential. Above all, be sure that you fix fungal issues immediately after discovery. Otherwise, you'll likely have to fend for yourself. Know your commercial insurance policy and keep your building safe.

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