A Quick Guide to Mold and Water Damage Limits in Florida

Water is one of the leading causes of damage to real property, so it is important to know the coverage amounts your policy provides for such losses. Many people are unaware that homeowners insurance policies contain coverage limits for certain causes of loss that pay out at less than the full building coverage amount. Water and mold are two types of damage that are often limited by insurance policies. In fact, some policies contain water damage exclusions which outright exclude any damages resulting from water. Please review your policy NOW before its too late. It is important to make sure you have insurance coverage you need for the value of your property currently

Knowing what your policy covers can help ensure your claim is fully and properly paid. Keep reading to learn more about how mold and water damage limits work in the state of Florida.

Water Damage

Water damage claims can start small and escalate quickly. Water generally finds the lowest point and the damages may be unseen at first. Water claims in high temperatures in Florida can be complicated doubled with mold growth. Property damage is only covered if the loss resulted from a covered peril. Covered perils generally include sudden and accidental events. In terms of water damage losses, these can include burst water pipes or appliances that suddenly spring a leak, or overflow or Air conditioning units that freeze and overflow. Most policies exclude coverage for damage arising from maintenance issues and from long term, constant or repeated seepage or leakage of water, humidity, condensation, and problems with drainage.

Water damage from flooding is not covered under regular homeowners insurance policies. You would need an additional flood insurance policy for this peril.

Water Damage Limits

Many insurers limit water damage claims to $10,000 which is often not enough to cover the cost of restoring property back to its pre-loss condition after a water loss.

As a property owner, you have the responsibility of mitigating your damages. This includes drying out the area to prevent further issues like mold. A $10,000 water damage limit may include the cost of drying out the damaged location. The mitigation cost most if not all of the $10,000 limit and not leave enough for the necessary repairs. Also, many policies require you to notify the insurance company within a limited time frame (sometimes as little as a few days) of your intent to use a mitigation company. Some policies limit coverage for water mitigation services to a certain amount if you use your own company, but offer a greater amount of coverage if you use a preferred contractor of your insurance company

Knowing what to do if you suffer a water loss can be difficult. If you find yourself in such a situation, you may benefit from talking to an attorney who specializes in helping property owners understand their insurance policies and get the most out of them

Mold Damage

Whether mold damage is covered under your property policy depends on several factors including the types of coverage you have and how the mold developed.

Mold is usually the result of water damage. Many insurance carriers limit mold damage claims and this coverage only applies if the mold results from a covered peril

Your insurance policy may cover the costs of detecting the mold, cleanup, and necessary repairs, but this isn't always the case.

If the cause of the mold is not covered under your general policy, you may have special coverage through an endorsement that addresses mold, wet/dry rot, and fungi and which may also increase the amount of coverage. Please review your policy and all endorsements to know these amounts.

Do You Have Water or Mold Damage?

Water and mold damage can be costly to mitigate and repair, and insurance policies can be complicated when it comes to water and mold coverage. It's imperative that you advocate for yourself as a property owner.

If your insurance company isn't paying what they should, you need an attorney.

A property damage attorney can help you interpret your policy, gather the evidence you need, and fight the insurance company to get you the compensation you deserve to enable you to restore your property back to its pre-loss condition.

Click here to schedule a free consultation today.