This can seem a little complicated the first time you go through it. Some of this I may have covered on a previous blog. But because I keep running into this when I go on inspections I want to help people understand what they need to do in this process of a potential insurance claim especially if mold may be involved.
Each insurance company has a policy on mold coverage and it it is important for you to know what that coverage is for your particular insurance company and your particular policy. Realistically, most people don't know what their coverage is until they actually have a potential claim and then they have to call their agent and investigate to find out what their coverage actually is. Keep in mind when calling your agent they are not an employee of the insurance company. Their primary job is to sell you or provide you with coverage options for your insurance. And they cannot make a decision whether you have coverage on a particular issue or not. That would be the adjuster's job.
Many times insurance companies, through their agents, will discourage making a claim so they can keep their payouts lower. They may say things like 'if you file this claim then the risk of your policy being cancelled goes up'. Although, this might be true, it does not always reflect what will actually happen. It is true the more claims that are made in a short period, say in 3 years time, will likely result in your policy being cancelled so you need to decide which claims are more important to file. Normally you want to have a larger claim filed as opposed to filing claims for smaller amounts say like 2 or $3000 depending on your particular situation.
In my experience of handling insurance claims in water damage since 2005 it is usually best to report that you have found a leak of some sort as opposed to saying 'I have mold in my house'. Insurance companies that cover mold will normally have a cap on the mold coverage. For example, State Farm has a cap of $5000 to cover anything related to mold Including repairs related to mold. Where the insurance company Farmers does not cover mold, yet they will cover any repairs related to mold after the mold remediation has been completed.
However, that is not the same as water mitigation or dry out services. Anything to do with water mitigation or dry out services is handled separately as a different expense although it may be in the same claim. And the cap on water damage services is normally the policy limit whatever that limit may be. Say, up to the value of the house.
One more point I want to make is this:
Sometimes using an approved vendor or a vendor Of a particular insurance company is not always the best way to go. There are several reasons for this to consider In your particular situation.
Write something about yourself. No need to be fancy, just an overview.