Insurance & Water Damage: Use it and You'll Lose It

Are homes with a history of Mold contamination uninsurable and potentially unsellable?

No, but sadly, in spite of the fact that most insurers exclude mold coverage from their insurance policies, many still refuse to write homeowner's insurance policies for homes that have a history of water damage within the last five years. "Homeowners need to take the attitude that a claim on their policy will have an effect", said Omar Morales, spokesperson for the Insurance Information Network of California. Further, Mr. Morales advises "It's up to the consumer to save insurance for really big losses and try to cover smaller losses themselves."

Anyone who has had a water-related damage claim in the last five years may be hard pressed to find homeowners insurance at any price. Not because the house has Mold, but because it might. This leaves sellers and buyers in a tough place, since proof of insurance is required for a mortgage of any kind. To keep premiums affordable, you have to be creative. The two ways to reduce your costs are to take higher deductibles or get a policy that doesn't cover water damage. You can also analyze your policy to see if there's any coverage you could do without.

The Insurance Industry says "You've been warned!" If you use your insurance policy, you stand a great chance of losing it. What can you do to fix the leak or problem without breaking the bank or finding yourself uninsurable? Tune in tomorrow. You can also send an email to tommi@infotube.net, if you have a question relating to a specific water damage or mold issue. Thank you!