does flood insurance cover mold

If you have a homeowner's policy, you likely know that floods are not covered under standard home insurance coverage. In areas where floods are frequent, it’s important to invest in an additional flood insurance policy.

What Does Flood Insurance Cover?

Flood insurance covers sudden and unexpected natural flooding. It can provide compensation for damage or loss to your home, its attached structures and personal belongings. This insurance will only cover damages that arise due directly to floods, however.

Common exclusions from flood insurance include:

Earthquake damage
Business interruption
Personal belongings and property not within the home (septic systems, patios, decks and swimming pools are often not covered)
Currency

Most vehicles
Damage from mold and mildew*

Mold when it comes to flood insurance isn’t completely black and white. In some instances, a flood insurance claim for mold may be denied while in others it can be approved. This is due to the cause of the mold.

When an underwriter from your insurance agency investigates the claim, they will calculate the damages and their cause to determine how much compensation you receive, if any. If it’s discovered that damaged caused by mold could have been reasonably prevented by the homeowner, the flood insurance claim will likely be denied. So while a flood may cause mold, if the mold grows as a result of inaction on behalf of the homeowner, insurance will not help.

There are also exceptions depending on where the items are stored. Items stored in a basement may not be covered by flood insurance, especially electronic and furniture. Be conscious of where you place the valuable items in your home.

To avoid mold and a possible claim denial, homeowners must take necessary precautions to prevent mold growth. If possible, clear the flooded area as soon as possible and dry it within 48 hours at most. Water and detergent can be used to remove some mold. Make sure to dry the area immediately afterward.

How Much Flood Insurance Do You Need?

Your flood insurance needs depend on your location and the value of your insured belongings. Flood insurance can provide compensation for appliances, electrical and plumbing systems, furnaces, water heaters, window treatments and more. Calculate the value of everything you want insured before purchasing a flood insurance policy. Flood insurance for certain items, such as art, jewelry and fur, typically have limited coverage of $2,500. This can also vary depending on your insurer.

Does Flood Insurance Cover Mold?

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