Many question if property and casualty insurance policies cover the remediation of mold infestation and subsequent structural repairs. According to an article in the August 2000 Claims Magazine, Mold & Mildew: A Creeping Catastrophe, Everette Lee Herndon, Jr. states, ” Some of these losses are covered, some are not. If the water damage is the result of a covered loss, the resultant damage, mold (including fungi, mildew, etc.), is probably also covered.” In order to avoid paying for remediation of pre-existing mold this article urges adjusters to make a site visit within the first 24-72 hrs, stating that any molds visible in the first two days after water damage are normally pre-existing and therefore generally not covered under the claim loss.
Mold contamination does not occur in every water damage loss. An adjuster must look for mold when circumstances warrant and must call in appropriate qualified experts for guidance when needed. Mold remediation may be expensive, but failure to remediate a covered damage may be even more expensive in comparison to the health issues and financial impact. Everette Lee Herndon Jr., claims consutlant and expert witness, recommends that a mold remedition contractor should be contacted when there is more than a small area (greater than 10 sqft) of visible mold contamination.