About Mold and Water Damage Insurance Claims Denials
If your property is damaged by water, the carrier should pay for this damage, despite the presence of mold.
Water losses can occur from several sources including: a sudden leak in plumbing or an appliance such as dishwasher or hot water heater; fire sprinklers; or a wind and rainstorm that causes wind driven rain to enter your property.
If any of these types of water losses occur, it is imperative that you hire a competent remediation company immediately to dry out the property so that mold does not appear. Most insurance policies contain low limits for mold, but not water. If your property is damaged by water, such as staining or warping, because of the water, then the carrier should pay for this damage, despite the presence of mold.