Why Do Some Insurers Exclude Mold Damage?
A number of insurers exclude mold from commercial property insurance policies. The costs associated with fungus removal can be considerable, and liability for occupant exposure may also apply. Here are a few reasons why mold may be cut out of the primary commercial insurance policy for a building located in University City, MO, along with tips for restoring coverage.
Mold Is Secondary Damage
Proper mitigation, cleaning and restoration of primary water damage reduces the risk of a major mold problem. Mold may result from any of the following factors:
- Failure to stop the source of moisture
- Leaving surfaces or materials saturated
- Not lowering high humidity levels
It is imperative to fix a pipe or roof leak, clean and dry the affected area and maintain low relative indoor humidity levels. Restoration professionals recommend these measures to minimize water damage and prevent mold.
Cleaning Up Mold Can Be Costly
If water damage is not restored correctly, the expenses of recovery may be much greater than the cost of a timely response to the initial incident. Mold inspection, testing and fungus removal can tack thousands of dollars on to total restoration costs.
Liability for Mold Is Complicated
Property owners or managers who do not respond to reports of water damage, musty odors or visible mold growth in a timely manner with inspection and mold cleanup may be held liable for their lack of action. In general, commercial lessees have fewer rights than residential tenants protected by state habitability laws or warranties.
Mitigating and restoring water damage quickly is the best way to reduce the costs and risks associated with mold in a commercial building in University City, MO. Fungus removal may be necessary if high moisture and humidity levels are sustained. Owners and managers of buildings prone to mold should seek out policies that cover mold or add a mold endorsement to existing coverage.