Why You Should Get a Mold Insurance Endorsement for Your Commercial Building

4/4/2022 (Permalink)

Commercial mold damage in Clear Lake, TX.

Your commercial insurance can pay for emergency restoration services following a fire, tornado or another disaster. However, not every type of peril is covered. For instance, most insurance policies only provide limited coverage for mold damage. That is why you should purchase a mold endorsement.

What Is Mold?

To understand why this endorsement is so important, you first need to learn a bit about mold. This fungus uses spores to reproduce. The spores spread via air and wind currents. All mold needs to grow is:

• Heat
• Moisture
• Oxygen
• Food
  

Mold eats various building materials, including carpet, wood, paper and drywall. The fungus then destroys these items as it grows. If left unchecked, mold could harm much of your Clear Lake, TX, property.

When Is Mold Covered by Insurance?

Most commercial insurance policies include a fungus exclusion that prohibits coverage for mold and similar toxins. There are some exceptions, however. Mold that grows following a lightning storm or fire is usually covered.
If the mold results from another peril, your insurance may provide limited fungus coverage. Mold growth that occurs after a flood may also qualify for this coverage if you added a flood endorsement to your commercial policy.

What Is Limited Fungus Coverage?

Limited fungus coverage gives you money for mold remediation services. The insurance funds can go toward the costs of removing the fungus and testing the building to ensure the mold is gone.
Keep in mind that limited fungus coverage only applies if you take all reasonable steps to prevent and limit mold growth on your property. There is also a cap to this mold insurance. Most insurers will only pay $15,000 per occurrence. However, cleanup and restoration can cost much more than that. You thus need an endorsement to supplement this coverage.
Your commercial insurance may include some coverage for mold infestations. However, this may not be sufficient following a major mold loss. A mold endorsement should help you pay for any additional expenses you incur.