Understanding Limited Fungus Coverage

8/21/2020 (Permalink)

Commercial mold clean up in Broken Arrow, OK

Does Traditional Coverage Cover The Cost Associated With Mold Remediation?

Many property owners do not understand the specifics of their commercial insurance policies, especially as it relates to mold damage. Does traditional coverage cover the costs associated with mold remediation in Broken Arrow, OK? The answer is complicated. Some policies will cover a portion of the damage, but many policies have mold exclusions, which means you would need to purchase additional coverage. The most beneficial plans, however, have limited fungus coverage built into the program, which covers several vital elements of mold remediation.

Direct physical loss of covered property
Testing after remediation
Tear out and replacement costs

Direct Physical Loss of Covered Property
With limited mold insurance coverage, your policy will cover the removal and replacement of specific damaged elements in your facility. For example, if mold is covering sections of drywall, the plan will most likely include the removal and replacement of the affected drywall.

Testing After Remediation
There is nothing worse than resolving a mold problem only to have it reoccur later in the same area. Most commercial insurance policies will also cover the cost of testing after mold remediation to avoid such issues because no insurer wants to risk further expenses through neglectful mitigation.

Tear Out and Replacement Costs
With limited fungus coverage, the costs associated with tear out and replacement will be covered regardless of how the mold spread. For example, if the mold spread into a wall cavity that is only accessible through the removal of uncontaminated drywall, the limited coverage would cover the cost of drywall removal and replacement.
Commercial insurance policies are complex documents, and it is impossible to say what is covered or not without examining the real plan. Fortunately, business and commercial property owners can reach out to their agents to discuss specific coverages and the existence of limited fungus coverage. You may also consider the benefits of mold testing with a licensed remediation expert.