Insurance Policy Misconceptions Part 3 – My claim is at policy limit – Is the mold still covered?

In a prior blog, Don’t Shop Price, Shop Coverage, I discussed the importance of insurance coverage for your property.  It is really important to make sure you have enough coverage for the limits in your policy. Here's why ...

A potential client had water damage to his condominium that came from the unit above. Everything from the ceiling to the floors had to be replaced and there were obvious signs of mold. Upon reviewing his insurance policy, I found he only had a policy limit for Coverage A – Dwelling of $10,000.00. This amount also includes the dry out the mitigation company performed to dry his property. He was concerned about the presence of mold which the declarations page of his insurance policy stated he had $10,000.00 mold coverage.

In this example, the mold coverage is inclusive when you have reached your Coverage A – Dwelling policy limit, it is not an additional coverage under the policy.  After explaining the policy to him, he was understandably concerned with the lack of coverage and said he will make sure he changes his policy. His exact words were, “I never realized I needed more!”
 
Most individuals do not look at their coverage limits, and if they do, they think they have enough. My explanation on how to view your coverage and determine if you are adequately covered is simple. Imagine a catastrophic loss occurring, such as a fire, and it destroyed your property.  Would the coverage limit you currently have be enough to cover the rebuild of your property?  I know that many of you think this will never happen to you, but it certainly can, and you need to be properly insured so you do not have to come out of pocket for repairs.
 
For additional information or answers to any questions you have, please contact us here or call 561-288-6434.