Housing

What Homeowners Insurance Does Not Cover

Douglas A. McIntyre

Published: August 21, 2022 10:30 am

When people insure their homes, they have to read the fine print really carefully. Most obvious problems that will cost homeowners money are covered. However, damage from floods often is not. This leaves people to buy special insurance or face large financial damages in the case of a disaster. As the number of floods increases, these barriers loom larger. Another potentially costly condition is mold.

According to a Realtor.com analysis, “5 Surprising Things Homeowners Insurance Won’t Cover,” the authors point out that “While home insurance typically covers a variety of common hazards, don’t get too confident—it may not cover every mishap that comes your way.”

Mold has a number of causes. Among them are leaks, humidity, appliances that leak, and major flooding from outside the home. Carpet, drywall, and paint often become moldy. Mold can damage health as well as home infrastructure, which makes it a problem for both people who live in a house, and potential buyers. Mold detection is usually part of buyer inspections.

Healthline reports that mold can cause breathing problems and headaches. These problems can become chronic.

Analysis of mold removal shows costs can run as high as $3,000 for a medium sized house. For a larger home, the figure can be double. Carpet sometimes needs to be taken up and destroyed. In severe incidents, walls need to be torn down and replaced. In other words, mold costs can run double many mortgage monthly payments.

The CDC suggests a number of mold prevention measures. These include “controlling” humidity levels, repairing all leaks, regardless of their sources, cleanup after floods, and ventilation of areas which include showers and laundries.

The Journal of Clinical Infectious Diseases reports that fungal disease drives medical costs of as much as $7 billion a year. So, the primary financial effects of mold can be more in healthcare costs than home repairs.