Is Mold Damage Covered By Rental Insurance?

1/21/2019 (Permalink)

Mold Infestation at a Greeneville, TN home

Rental insurance policies may include automatic endorsements for mold damage or exclude this type of damage. These policies generally cover damage to a tenant's personal property. When it comes to a rented property, tenants are only liable for mold resulting from a leak that they have caused. Here are a few considerations for renters pursuing mold removal.

The Cause of the Damage

Renters insurance should cover damage caused by a leak that is beyond the tenant's control. A policyholder may need to provide proof of several conditions:

•  The presence of water damage
  
•  No personal liability for damage
•  Proof of mitigation

A tenant should notify a property owner of the presence of a leak in a timely manner and try to prevent mold growth. Rental policies should also cover contents exposed to water damage, which is likely to be a precursor to mold.

The Terms of a Policy

Tenants should carefully review the terms of a rental insurance policy. Some policies feature automatic endorsements for several problems resulting from water damage:

• Mold
  
• Fungus
  
• Rot

If these conditions are carved out of a policy, the cost of mold removal will not be covered. Remediating damaged contents out-of-pocket may still be less expensive than replacement.

Ways To Mitigate Damage

Tenants' responsibilities for rental properties are limited. As long as a tenant does not cause a leak or another source of water damage that results in mold, his or her primary duty is to notify a landlord about a problem before mold becomes an issue.

Rental insurance may or may not cover the cost of restoring damage caused by mold at a residence in Greeneville, TN. Coverage for water damage is more likely. Report primary damage to a property owner or manager and take measures to prevent mold growth. If a policy provides any coverage, these measures may make it easier to file a claim.