How Mold Damage Insurance Claims Work

Keep reading to find out how mold damage insurance claims work and how much you could receive for your mold damage insurance claim.

When Does Home Insurance Cover Mold?

Mold damage is a common exclusion on home insurance policies. However, there are some situations where home insurance covers mold.

If mold damage was caused by a sudden or accidental event, for example, then home insurance could cover it. If a pipe suddenly burst, causing mold damage behind your walls, then home insurance could cover the mold damage.

On the other hand, home insurance won’t cover mold damage linked to poor maintenance – like a pipe slowly leaking behind your walls over a six month period, or an upstairs bathtub that had been leaking for years.

Some of the most common situations where home insurance covers mold damage insurance claims include:

• A pipe or drain hose suddenly ruptured or started to leak
• An appliance – like a dishwasher or washing machine – malfunctioned, leading to mold damage
• Your toilet suddenly started to overflow
• Firefighters extinguished a house fire, causing mold damage within your property
• Rain from a storm entered your property, leading to mold damage

In all of these situations, insurers could cover the entire cost of mold removal and remediation, up to the limits of your policy. You could receive $10,000 in compensation for mold removal instead of paying out of pocket.

When Does Home Insurance Not Cover Mold?

Home insurance will not cover mold in many situations.

If the damage occurred over a long period, for example, then home insurance may not cover mold. If you ignored a leaking pipe behind your walls for months, for example, and that leaking pipe caused mold, then you may not be able to make a home insurance claim.

Home insurance will also not cover mold damage caused by flooding. Unless you have supplemental flood insurance, in fact, your home insurance does not cover flood damage of any type.

Some of the situations where home insurance does not cover mold include:

• Mold damage caused by flooding
• Mold damage caused by maintenance issues wear-and-tear, like a leaking pipe dripping behind your walls for months without you noticing
• Mold damage caused by water backups (like a clogged sewer line or a broken sump pump)
• Mold damage beyond a certain dollar amount (most policies cover $1,000 to $10,000 of mold damage)
• Mold damage caused by broken or dirty roof gutters that caused water to flow over other parts of the house
• Mold damage caused by poor ventilation (like humidity buildup in a poorly-ventilated bathroom)

Depending on your mold damage, you could have plenty of coverage for the incident. Or, you could be forced to pay out of pocket to remediate your mold damage.

How Mold Damage Insurance Claims Work

If you believe your home insurance policy covers mold, then you may want to file a homeowners insurance claim for your mold damage.

Here’s how a typical mold damage insurance claim works:

1. Contact your insurer to report the incident. Call your insurer’s 24/7 claims hotline or contact your insurance agent. Your insurer assigns a number to your claim, and an adjuster contacts you with the next steps.
2. Document the damage by taking photos or videos. Take as many photos and videos of the mold growth as possible. Document damaged items and their approximate value. If you have a home inventory list, this inventory list can make your insurance claim easier. The more evidence you can provide to your insurer, the easier your mold damage insurance claim will be.
3. Take whatever steps possible to limit the damage. If the area is safe, take steps to limit further damage. Turn off the water at your home. Remove waterlogged items. Run a dehumidifier. If your home is unsafe to live, secure alternative accommodations. Make sure your home insurance adjuster sees all significant damage before you start the restoration or cleaning process.
4. Hire a restoration company. Your insurance company may recommend a mold remediation company or restoration company to begin the first repair steps. This company can secure the scene, remove water-damaged walls and flooring, and begin the remediation process. Mold can be messy, and it’s important to hire professionals to ensure the job gets done right.
5. Contact a public adjuster for any disputes or issues with your claim. A public adjuster represents your best interests in the insurance claim. They negotiate with the insurer on your behalf, secure the highest possible amount of compensation for your insurance claim, and ensure your insurer pays you every penny you are legally owed. If the insurer is dragging its feet, denying your insurance claim, or lowering your compensation, then contact a public adjuster to fight back.

As Nationwide explains, you should also take future steps to prevent mold growth in your home – like ensuring good ventilation and keeping up-to-date with repairs.

How Much is a Mold Damage Insurance Claim Worth?

The average mold damage insurance claim is worth anywhere from $3,000 to $10,000, depending on the scope of the damage.

If your property has significant mold damage, it could cost $20,000 to $35,000 to remediate that damage. In fact, mold damage insurance claims can quickly spiral in cost, which is why many insurers assign limits.

Many homeowners insurance policies have a limit of around $1,000 to $10,000 for mold damage and remediation. Check your policy to verify your limits.

Concerned About Future Mold Claims? Add Supplemental Coverage

If you’re concerned about mold claims in the future, then consider adding supplemental coverage to your insurance policy.

These supplemental coverages can increase the likelihood of your insurer covering a mold problem.

Contact your insurer and ask about supplemental coverages like:

• Water Backup Coverage: Ordinary home insurance policies do not cover sewer or sump pump backups. Generally, if water flows from the ground up into your house (say, with flooding or sewer backups), insurance won’t cover it. If you add water backup coverage to your policy, then your insurer should cover any mold damage caused by backed up sewers or sump pumps.
• Hidden Water Damage Coverage: Some insurers let you add hidden water damage coverage to your policy. If there’s a hidden leak behind your walls and you don’t notice it, then insurance will not normally cover it. If you have hidden water damage coverage, however, your insurer will cover most mold damage.
• Flood Insurance: If you live in a flood-prone area, you may want to add flood damage to your policy. Flood coverage, available through the National Flood Insurance Program (via FEMA), covers damage caused by rising floodwaters, including mold damage and structural damage. Without flood insurance, you may need to pay for flood damage repairs out of pocket.

It may cost just a few dollars per month to add these coverages to your policy, but it can help you save thousands of dollars on a future mold insurance claim.

How ClaimsMate Public Adjusters Help with Mold Damage Claims

Mold claims are usually the hardest to get covered under your policy. There are very fine lines and even State Laws that have to be taken into consideration. ClaimsMate’s public adjusters specialize in mold damage insurance claims, water damage claims, and other homeowners insurance claims.

Some of the ways in which a ClaimsMate public adjuster helps include:

• Speed up your insurance claim, ensuring you receive the payment you need as soon as possible.
• Negotiate with your insurer on your behalf for a higher payout.
• Organize documentation and evidence for your insurer.
• Maximize compensation by providing photos, videos, receipts, and other evidence validating your mold damage insurance claim.
• Manage your claim, repairs, and associated processes from start to finish to ensure an optimal outcome.
  Provide you with an expert insurance professional on your side who represents your best interests – not your insurer’s best interests.

Schedule a free consultation with a ClaimsMate public adjuster today to see how a public adjuster could help with your insurance claim.

Final Word

Mold damage doesn’t go away on its own. You need to take steps to fix your mold damage.

Homeowners insurance does not typically cover mold damage. However, it may cover mold damage in certain instances – say, if the damage was caused by a burst pipe or by a storm.

Contact your insurer or speak with a public adjuster to start your mold damage insurance claim and get the compensation you are owed.

Original Post Here: How Mold Damage Insurance Claims Work

What Are Additional Living Expenses for Home Insurance Claims?

Understanding additional living expenses can add thousands of dollars to your claim. This is money you are rightfully owed.

Today, we’re explaining everything you need to know about additional living expenses and how they work for home insurance claims.

How Additional Living Expense Coverage Works

When you buy home insurance, you’re buying protection against unexpected events.

If your home is destroyed in a house fire, for example, your insurer covers the cost of repairing or replacing your home.

Your insurer also covers certain unexpected costs related to the incident – like additional costs you must pay to live safely after a fire. These are additional living expenses, and they include things like car rental costs, hotels, meals out, and more. This is an additional coverage above and beyond your policy limits for the dwelling coverage. If you don’t see Additional Living Expense coverage on your Declarations Page, you need to contact your agent and add this to your policy.

Once this coverage is added to your policy, Insurers don’t expect you to live on the street after a house fire; instead, they expect you to find suitable accommodations for yourself and your family, buy clothing and food, purchase storage space for possessions, and pay for any other additional living expenses you would not normally have incurred.

If you have been forced out of your home due to a covered incident (like a house fire or flood), then make sure to keep all receipts. Your insurer is required, per the terms of your insurance contract, to cover certain additional living expenses. That could mean thousands of extra dollars on your final claim.

What Are Considered Additional Living Expenses?

According to United Policyholders, all of the following items are examples of what could be considered additional living expenses:

• Rent for temporary housing, including the cost of a short-term rental property, hotel accommodations, or other living situations.
• Mileage to and from the temporary accommodations to your place of employment, adult and children’s activities (like schools, ports, clubs, or lessons), or your house of worship.
• Mileage to and from the temporary accommodations to all locations linked to the rebuild of your property, including furniture stores, hardware stores, and appliance shops, among others.
• Meals eaten when living away from your property, including food costs above what you would normally pay.
• The cost of setting up new services at your temporary accommodations (like a new internet plan or new utilities).
• The cost of laundry and certain other tasks you are normally able to perform at home.
• Moving costs incurred when moving from the temporary accommodation back to the original property (say, your rebuilt or repaired home).
• Additional fuel costs incurred as a result of the loss.
• The cost of a rental car and other types of transportation.
• The cost of storing certain items after a loss, including new and old furniture and certain other items.
• The cost of moving furniture and other items into your home after a loss.
• The cost of cleaning your temporary accommodation after you leave.
• The cost of pet boarding.
• Many other additional costs you incurred as a result of a covered loss, up to the point where you can safely move back into your home or reach your policy limit (whatever comes first).

Your insurer is required to cover all of these things as additional living expenses if this coverage is added to your policy. Keep your receipts and track your spending after a loss to ensure you’re receiving appropriate compensation.

What Is Not Covered by Additional Living Expenses?

Additional living expenses are just that: additional living expenses. They’re costs you are forced to pay in addition to your ordinary living expenses.

You don’t normally need to spend a week in a hotel and eat out for three meals a day, for example. However, if your home was destroyed by a tornado, then these are additional living expenses you need to pay.

For that same reason, insurance will not cover ordinary living expenses. Items not typically covered under additional living expense coverage include costs you are already responsible for paying, including:

• Childcare
• Insurance
• Mortgage
• Food
• Utilities
• Other ordinary expenses you normally pay

Your insurer will not usually cover the cost of fuel for your vehicle. However, if you are forced to stay in a neighboring city after a loss and add an extra 50 miles to your commute, then your insurer could cover the additional cost of fuel as part of your additional living expenses.

How to Claim Additional Living Expenses

Insurers ask for proof of additional living expenses you incurred as a result of a covered loss.

Typically, you submit any required receipts or invoices to your insurer to receive compensation. Your insurer checks the receipts, verifies they’re additional living expenses under the terms of your insurance policy, then reimburses you for the costs. For meals at restaurants, you must keep the itemized receipt for them to consider it and pay for it.

Contact your insurance company’s adjuster or submit receipts to your insurer to receive compensation for additional living expense coverage.

How to Adjust Additional Living Expense Coverage

Many homeowners are surprised to discover they can adjust additional living expense coverage.

Most homeowners insurance policies have a default percentage of additional living expense coverage – say, around 25% of your insurance policy’s dwelling coverage. Most homeowners never change this percentage, and it’s sufficient for most homeowners.

However, some homeowners choose to upgrade their additional living expense coverage to something called “actual loss sustained” coverage. Under actual loss sustained coverage, your insurer covers all additional living expenses with no limit. Whether you need to spend a week or a year in a hotel, your insurer covers your costs without a limit.

Check your “loss of use” or “additional living expense” portion of your home insurance policy to verify you understand your coverage limits. If your coverage limits are too low, then you may want to upgrade to actual loss sustained coverage.

How Long Will Insurers Cover Additional Living Expenses?

Insurers typically cover additional living expenses to the following limits (whichever comes first):

• Until you can move back into your home (say, after it’s rebuilt or repaired)
• Until you reach your policy limit

Whether you’re outside of your home for one year or one week, insurers typically must cover additional living expenses until you reach one of the above.

Public Adjusters Help Maximize Additional Living Expense Compensation

Few homeowners understand everything covered under additional living expenses. Fortunately, public adjusters can help.

Public adjusters have handled hundreds – sometimes even thousands – of claims. They know what’s covered, what insurers are required to pay, and how to hold insurers accountable.

Public adjusters can easily identify additional living expenses that you have not yet claimed, potentially adding thousands of dollars to your insurance claim.

Contact ClaimsMate today to speak with a public adjuster about your insurance claim.

The sooner you speak to a public adjuster, the sooner you can get the compensation you deserve for additional living expenses and all other damages incurred after a loss.

Article Source Here: What Are Additional Living Expenses for Home Insurance Claims?

5 Warning Signs There May Be an Issue With Your Home Insurance Claim

Sometimes, the insurer is simply doing their due diligence, researching your claim and verifying the facts.

In other cases, these warning signs suggest the insurer is denying your claim or reducing your payout.

Your insurer may be acting in bad faith, deliberately delaying your claim unnecessarily to frustrate you and convince you to take a lower payout.

Here are five warning signs there could be an issue with your insurance claim.

You Haven’t Heard from Your Insurer in a While

Typically, your insurer updates you frequently during the claim process. They may contact you for information, respond with updates, issue advance payments, and keep you in the loop.

If your insurer has suddenly stopped communicating, however, and has not updated your claim in a while, then it could be a sign of an issue with your claim.

States require insurers to respond to your requests in an appropriate length of time. Some states have specific laws – like 14 to 30 days – during which insurers must respond to your claim. Other states require insurers to respond in a “reasonable” length of time. If your insurer hasn’t responded to your claim in a while, it could indicate an issue with your claim.

Contact your insurer and request an update. Keep a record of all communication with your insurer, including the dates and times of the conversation and the topics discussed. When you hang up the phone, follow the call with an email to the person you spoke to and outline what you discussed. Ask them to respond if any of the information you have recapped is incorrect.

Your Insurer Notifies that Your Claim is Being Investigated

Insurance companies lose billions each year to fraud. Insurers investigate claims as part of their normal due diligence process.

A formal “investigation,” however, is not a normal part of a standard home insurance claim. All claims take time for processing, but this processing time is different than an investigation:

• If your insurer tells you your claim is being processed or going through processing, then this is a normal and expected part of the claims process. Your insurer is simply verifying your paperwork and other documentation and proceeding with your claim as normal.
• If your insurer tells you your claim is being investigated, then this may not be a good sign. It could indicate the insurer needs more evidence to verify your claim, for example. Or, it could indicate the insurer believes your claim was not legitimate or that some or all damage is not covered by your policy.

If you have a good insurer and a legitimate claim, then there may be little reason to worry: the insurer might simply be doing their due diligence.

If you have a poorly-rated insurer, however, then there could be a reason to worry. Some insurers investigate claims unnecessarily to slow down the payout process, frustrating homeowners and convincing you to accept a lower payout.

It’s Been 30 Days Since Filing a Claim With No Settlement or Notification

State laws vary. However, most insurers aim to resolve claims within around 30 days. During these 30 days, the insurer looks over your claim, verifies your information, and either approves or denies your claim. If this is a flood claim or a “catastrophe” claim, then that time limit is extended to 90 days.

If it’s been 30 days since filing your claim and you haven’t heard much from your insurer, then it could be a cause for concern. Typically, insurers alert customers within 30 days if their claim has been approved or denied.

Look for a formal letter within a 30 day window. If you haven’t received a formal letter approving or denying your claim, consider reaching out to your insurer or hiring a public adjuster.

Your Insurer is Asking Excessive Questions

Insurance companies investigate claims as a normal part of their job. However, if the insurer is asking an excessive number of questions, it could indicate a problem with your claim – or an insurer acting in bad faith.

Your insurance company should ask three basic questions after a claim:

1. What happened to your property? What type of damage occurred to your home?
2. How have your home, property, or possessions been damaged?
3. What is your proof of these damages?

If the insurance company continues to ask questions beyond the questions above, it could indicate a problem with your claim.

Some insurers ask excessive questions to trip you up, for example, and cast doubt on your claim.

Other insurers ask excessive questions to delay your claim unnecessarily. Both of these are serious issues where your insurer is acting in bad faith.

The Insurance Company Requests a Recorded Statement

Sometimes, your insurer requests a recorded statement as part of the investigation process. The insurer may ask you to sit for a recorded interview with their adjuster or they may ask you to do a sworn statement under oath at a law firm.

During the interview, the insurance company’s adjuster asks questions, and your answers are formally recorded and used for or against your claim.

Generally, insurance experts do not recommend giving a recorded statement to your insurance company. In many cases, it’s a trap. This is the time to seek help and have a licensed adjuster prepare you for the call.

Even if you have a legitimate home insurance claim, your insurer could find reason to deny your claim with a recorded statement. If you misspeak or incorrectly remember something, for example, then your insurer could use that information to deny your claim or reduce your payout.

Solution: Fight Back by Hiring a Public Adjuster

There’s a simple solution for all of these warning signs: fight back by hiring an insurance professional to represent your side of the battle.

A public adjuster represents you – not the insurance company. The public adjuster fights for your best interests, negotiating with your insurer to ensure you receive every penny owed to you.

If your insurer is acting in bad faith, then your public adjuster can call out your insurer. Public adjusters know the tricks insurers use to reduce payouts or deny claims – and they know how to push back on behalf of the policyholder.

Whether your insurer is acting in bad faith or just being slow, you could speed up your claim, increase your payout, and receive the payout you deserve with a good public adjuster.

Get Insurance Claim Help When Necessary

When a home insurance claim goes smoothly, your insurer processes it quickly, approves the paperwork and documentation, and pays you based on the terms of your policy.
In many cases, however, insurance claims don’t go smoothly. Insurers could demand excessive paperwork to reduce your payout, for example, or act in bad faith to delay your claim.

Hire a licensed public adjuster in your area to help. ClaimsMate is a licensed public adjuster company with a proven track record for resolving claims.

If you have a complicated claim and a difficult insurer, then it may be in your best interest to hire a public adjuster. Contact ClaimsMate today for a free consultation.

Article Here: 5 Warning Signs There May Be an Issue With Your Home Insurance Claim

How to Pick a Good Home Insurance Provider: Tips & Best Practices

If you pick a good insurer, you could experience a smooth, stress-free claim.

For all of these reasons and more, it’s worth spending time researching a good home insurance provider.

Here are some of the strategies for picking a good home insurance provider, including our tips and best practices.

Check J.D. Power Home Insurance Company Ratings

You can read plenty of guides online about the “Top 10 Best Home Insurance Companies” in the United States. Some lists are unbiased, while others have obvious favorites.

Fortunately, you don’t need to trust random articles online; instead, you can use J.D. Power to assess the quality of home insurance companies across the country.

Each year, J.D. Power polls homeowners across the United States who have recently made a claim. Homeowners describe their experience and overall satisfaction. Then, J.D. Power uses thousands of survey responses to rank today’s best insurers.

J.D. Power recently published the results of its 2023 home insurance study:

J.D. Power Overall Customer Satisfaction Index Ranking for Homeowners Insurance

• USAA (881)
• Erie (856)
• Amica (844)
• Auto-Owners Insurance (834)
• AIG (831)
• State Farm (829)
• COUNTRY Financial (819)
• Segment Average (819)
• American Family (813)
• Nationwide (812)
• Allstate (809)
• The Hartford (807)
• Travelers (790)
• Liberty Mutual (789)

Because USAA restricts membership to military personnel and their families, they weren’t technically eligible for the top spot – despite scoring significantly higher than competitors. According to J.D. Power, Erie Insurance is the best homeowners insurance company in the United States for 2023 based on the overall satisfaction of customers.

Before buying a home insurance policy, check the insurer’s J.D. Power rankings. Many insurers claim to emphasize customer service – only to disappoint customers during a claim. With J.D. Power’s rankings, you get genuine thoughts from customers who have recently made a claim.

You can view J.D. Power’s full 2023 home insurance company rankings here.

Check the NAIC’s Complaint Index

Some insurance companies have a higher-than-average number of complaints compared to competitors.

All insurance companies – even the best-rated ones – get complaints. A homeowner may be dissatisfied with a hidden term in their policy, for example, or have a bad experience with a specific adjuster.

When a company frequently has a higher-than-average number of complaints, however, it suggests there’s something amiss.

Fortunately, you can check how many complaints each insurer gets using the National Association of Insurance Commissioner’s Consumer Insurance Search feature. The NAIC collects information on each insurer, then tracks the number of complaints about insurers over time.

Here’s how to use the NAIC’s complaint index feature:

1. Visit the NAIC’s Consumer Insurance Search form here: https://content.naic.org/cis_consumer_information.htm
2. Enter the name of the insurance company you wish to learn more about.
3. Click on the company, then click “Go to Complaint Trend Report”
4. Look for the company’s Complaint Index. The national average is 1.0. If the company has a number higher than 1.0, then they have more complaints than expected for a company of its size.

In the example below, you can see GEICO has a complaint index of 1.21, for example, which means GEICO receives more complaints than average for a company of its size.

If a company has a Complaint Index of 2.0, it means they have twice as many complaints as the nationwide average.

The NAIC calculates the Company Complaint Index by dividing the company’s share of complaints in the United States market by the company’s share of premiums in the market.

Check your insurer’s NAIC Complaint Index before signing up for a policy. Few insurers publish this information upfront, which is why it’s important to check.

Check a Company’s Financial Strength Rating (FSR)

If an insurance company files for bankruptcy, it is much harder to have your claim paid. Some claims are not paid at all, depending upon how the bankruptcy is structured.

It may sound unlikely, but many insurers are one regional disaster away from declaring bankruptcy. Many filed for bankruptcy in 2023 after Hurricane Ian in Florida.

Fortunately, the best insurers have strong financial strength ratings and a diversified policyholder base. These companies are unlikely to face issues paying your claims for the foreseeable future.

There are multiple ways to check a company’s financial strength rating, including:

• Use A.M. Best’s online form to search for your home insurance company. A.M. Best analyzes assets and liabilities of an insurance company, then assigns a financial strength rating to each one. Financial strength ratings range from D to A++, with A++ being the highest. The stronger your insurance company’s position, the better your financial strength rating will be.
• Use Standard & Poor’s Corporation rates to assess the financial strength of your insurance company. Like A.M. Best, S&P assesses corporations based on their assets and liabilities. However, S&P does not perform an audit in connection with its ratings. You can view S&P’s list of corporations and financial strength ratings here.
• Use other ratings organizations with similar databases, including Fitch Ratings, Kroll Bond Rating Agency (KBRA), or Moody’s Investor Services.

Be Wary of Online Insurance Company Reviews

We haven’t recommended a specific home insurance company on our list, nor have we ranked the top 10 best home insurance companies in the United States. Why? Because many of these lists are biased.

A quick Google search for “insurance company reviews” or “best insurance companies” reveals many websites recommending poorly-rated insurers simply because they get paid for each referral.

Online reviews can also be overly negative – even for good insurers. Most people don’t bother reviewing their home insurance company unless they’ve had a bad claim, for example.

Check insurance company reviews before you sign up. But be wary of misinformation and biased information online – especially if a website frequently pushes you towards one specific option.

Other Factors to Consider

Other things to consider when comparing home insurance companies include:

Mobile Apps, Website Accessibility, & Overall Convenience: You may be dealing with your home insurance company frequently. You want a company with good mobile apps, an accessible website, and other features. It may sound basic, but many smaller insurers have outdated websites compared to nationwide brands.

Local Agents or Offices: Sometimes, it helps to choose a home insurance company with an office in your area – especially if you like to build a professional relationship with your insurance agent.

Available Discounts: Home insurance companies typically offer similar discounts – like bundling discounts and home safety feature discounts. However, some insurers offer unique discounts and programs – like a military discount or HOA discount – that may help you save money.

Compare Quotes Based on Similar Coverage: Some insurers dazzle you with cheap premiums, only for you to discover they’ve stripped away most of your coverage to impress you with low rates. When comparing quotes online, make sure you compare plans with similar coverages. You don’t want to compare a replacement cost policy with an actual cash value policy, for example, because the two policies cover different things. You don’t want to compare a $500,000 home insurance policy with a $425,000 insurance policy. Make sure you’re comparing similar plans.

Final Word

Buying a house may be the largest financial investment you make. Home insurance protects that investment. Once you have found your perfect fit, reach out to a public adjuster in your area and ask them to review your new policy. Most of them will offer this service for a small fee or no fee at all. They can tell you what is missing and what can be added so that you are fully covered for any loss that may happen.

By shopping around for the right home insurance company today, you can ensure you pick the one best suited for your unique needs.

Facing issues with a bad home insurer?

ClaimsMate fights back against insurance companies acting in bad faith. Contact ClaimsMate today for a free consultation with a licensed public adjuster in your area.

Article Here: How to Pick a Good Home Insurance Provider: Tips & Best Practices