Part 1 of 2: An estimated 76 million homes have cast-iron pipes, which can cost $10,000-$30,000 to replace in a residence.
By Donald Dunn and Ralph E. Moon, Ph.D.
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Cast-iron pipe corrosion is complex and involves a variety of biological, chemical and physical stress factors on the interior and exterior of cast iron pipe surfaces. However, other environmental factors may result in stoppages that are often not taken into account. (Credit: Donald Dunn)
The emergence of cast iron pipe (CIP) claims on the insurance landscape has placed adjusters, litigation defense and risk advisors in a difficult position because the damage to the pipe is not easily seen and the circumstances that contributed to discharges from pipe failures are not broadly understood.
When occasional backups, blockages, stoppages and overflows among pre-1970s homes with CIPs occur, the cause is often attributed to aging cast-iron drainpipes experiencing changes that diminish efficient waste transport and sometimes render the system unusable. CIP corrosion is complex and involves a variety of biological, chemical and physical stress factors on the interior and exterior of cast iron pipe surfaces. However, other environmental factors may result in stoppages that are often not taken into account.
How sanitary drains work
Most sanitary residential drains are gravity fed and water-assisted in their discharge of effluent. The sanitary sewer system is plumbed so that waste travels on a continuous downward slope from its origination point to its termination point in a municipal sanitary sewer, lift station or septic tank. The three to four-inch drain lines are pitched with a minimum of 1/8″ (1%) slope per linear foot so that the solid waste is carried away by the water used to clear the waste from the plumbing fixture in use. The sanitary drain line connections are directional and are intended to gradually direct the waste downstream while maintaining efficient flow and solids transport.
Sanitary lines are sized based on the number of fixtures that are served by the drain lines. Drain lines carrying solid waste are sized to run one-third full at minimal discharge and two-thirds full at maximum capacity. This design allows air to flow freely on the top of the pipe, preventing a vacuum lock.
A drain system’s design is intended to achieve turbulent flow to create a “scour zone” on the bottom of the pipe and helps keep the line clean. Pipe flow characteristics are critical to achieving optimal performance because corrosion is influenced by whether the pipe creates turbulent flow, which allows water and associated solids to flow down the pipe and not accumulate. Turbulent flow occurs when the water flow lines are intermixed and random, creating variations in pressures and velocities that move solids effectively through a pipe (Diagram 1).
Laminar flow occurs when the fluid flows in parallel lines with little to no interaction or pipe surface disruption. The absence of flow variation within the pipe encourages suspended matter to “fall out” of solution as a precipitate and allows organic matter (fat and grease) to adhere to the interior pipe walls. Laminar flow also promotes the inefficient discharge of waste in specific areas of the pipe.
Turbulent flow accelerates the rate of erosion/corrosion and creates thinning along a narrow area on the bottom of the pipe. This thinning creates local areas of increased turbulence that increase the corrosion rate. This is a very long-term process that leads to what plumbers call “channel rot,” which leads to holes and breaches on the bottom of the pipe as the process progresses.
The sanitary drain configuration can exert a profound effect on turbulence and velocity. From an adjuster’s perspective, the layout of the drain lines could identify installations that include 90o corners (1/4 bends) and abrupt elevation changes due to connection offsets. Abrupt bends and elevation changes influence flow velocities that lead to residual water and debris accumulation and microbial corrosion.
CIP age and design
CIP diameters may differ depending on whether the residential community was built before 1920. At that time, the CIP manufacturing process lacked uniformity in precise pipe diameters. The earliest CIP manufacturing process originated from methods that were 300 years old known as “pit casting,” which involves workers pouring molten iron into vertical molds lined with sand. This casting method produced pipes of various sizes and irregular pipe diameters that altered wastewater flow characteristics at pipe connections and joints. The pit casting method predominated until 1921, when “centrifugal casting” was developed by a French engineer, Dimitri Sensaud deLavaud. This method established new standards in pipe uniformity by allowing the molten steel to be distributed evenly inside the cast pipe form.
An estimated 76 million American homes have cast-iron pipes. Replacing residential cast-iron pipes tends to range between $10,000-$30,000.
Developments in pipe connections and fittings
Pipe joining or fitting is the coupling method between two pipes. There are three methods to join CIP, and the type of joining method will help interpret possible failure locations. No matter the pipe age or joining method, corrosion occurs where water is unable to drain or where a local area of rapid flow erodes the pipe.
1. Bell and spigot with caulked joints
The caulked joint was the only method of joining bell and spigot CIP before the late 1950s. A bell and spigot joint have one end of the pipe that was flared open and served as a socket to insert the opposite end of a pipe creating a joint (Figure 1). The gap between the spigot and bell was packed with oakum, a tar impregnated hemp or manila rope product. The oakum was packed into the joint to make a watertight seal. Molten lead was poured into the joint to fill the remaining part of the joint and hold the oakum in place.
2. Bell and spigot with compression gasket joint
A compression gasket was also used for a bell and spigot fitting. The compression gasket was a molded gasket that was made of vulcanized rubber following ASTM C-564 requirements. These requirements specified the hardness, elongation, tensile strength, tear strength and compression characteristics of the gasket. During installation, the gasket was inserted inside the hub and lubricated. The inserted pipe was aligned and inserted mechanically into the hub by attaching a lever and chain wrapped around the pipe.
3. Hubless joints
This joint was developed in the mid-1950s to hasten pipe jointing and require less-skilled craftsmen. Hubless cast iron soil pipe is joined by using the hubless coupling. Several different types of hubless couplings are available. The typical coupling consists of a rubber gasket and a stainless steel band (Photo 3). The rubber gasket is installed over one end of the pipe to the “stop” in the middle of the coupling. The other pipe is then inserted in a similar fashion so that the “stop” creates a small gap between the two pipes. A stainless steel band is then used to clamp the gasket in place and is tightened with a calibrated torque wrench.
Donald Dunn is a Florida-licensed master plumber and president of the Florida-based My Plumbing Company. In addition to providing residential and commercial plumbing services, he specializes in plumbing-related forensic and diagnostic analysis and teaches basic plumbing and plumbing-related cause and origin to insurance professionals and building scientists.
Dr. Ralph E. Moon, Ph.D., is a forensic scientist and frequent speaker at insurance conferences and seminars. His current research interests are studying rates of wood deterioration and metal corrosion among building materials and plumbing components used in residential construction. He is employed by NV5, Inc. in Tampa, Florida.
Part two of the series will look at the impact of government regulations and waste management have on CIP corrosion.
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The Federal Emergency Management Agency’s historic recalculation of flood insurance premiums will go into effect Oct. 1, and approximately 5 million policyholders nationwide will see changes in the coming year.
FEMA’s Risk Rating 2.0 has been hailed as positive in that flood insurance premiums will now accurately reflect the real cost of flooding. For years, the National Flood Insurance Program has subsidized flood insurance by calculating premiums based on flood zone maps, and not individual, present-day structure risk. Some homeowners have been paying far less than their fair share, while others have been paying much more. Risk Rating 2.0 is meant to correct that by assessing a building’s actuarial flood risk.
“Conscious of the far-reaching economic impacts COVID-19 has had on the nation and existing policyholders,” FEMA says, the agency is taking a phased approach to rolling out the new rates. New policies beginning Oct. 1 will be subject to the new methodology, and existing policyholders eligible for renewal will be able to take advantage of immediate decreases in their premiums. On April 1, 2022, all remaining policies renewed on that date or after will be subject to the new methodology.
In New England, tens of thousands of residential properties are considered to be at substantial risk of flooding – defined as having at least a 1% annual chance of flooding, or a “100-year flood” risk.
And the risks are only growing. More frequently, people in New England are seeing their streets or basements flooded by rainfall, because precipitation is dropping heavier within shorter periods due to climate change. Storm surge and sea-level rise threats are also rising, particularly in New England.
Risk Rating 2.0 will see FEMA incorporating factors like flood frequency, multiple flood types, distance to water and property characteristics to determine a structure’s insurance premium. The agency has released numbers showing how policyholders in each state will be impacted by Risk Rating 2.0. Federal law requires that most rates not increase more than 18% per year.Your stories live here.Fuel your hometown passion and plug into the stories that define it.Create Account
There are approximately 124,200 National Flood Insurance Program policies in force in all six New England states.
How will flood insurance changes affect Massachusetts?
In Massachusetts, FEMA says 94% of current premiums will either decrease or increase by $20 or less per month.
Of those seeing increases, 3,712 policyholders will see an increase of $20 or more per month, and 32,200 policyholders will see $20 or less per month. Immediate decreases will occur for 22,599 policyholders.
How will flood insurance changes affect Rhode Island?
For policyholders in Rhode Island, FEMA says 97% of current premiums will either decrease or increase by $20 or less per month.
Of those seeing increases, 389 policyholders will see an increase of $20 or more per month, and 6,092 policyholders will see $20 or less per month. Immediate decreases will occur for 5,520 policyholders.
How will flood insurance changes affect New Hampshire?
In New Hampshire, FEMA says 93% of current policyholders’ premiums will either decrease or increase by $20 or less per month.
Of those seeing increases, 3,712 policyholders will see an increase of $20 or more per month, and 4,557 policyholders will see $20 or less per month. Immediate decreases will occur for 2,675 policyholders.
How will flood insurance changes affect Maine?
In Maine, FEMA says 91% of current policyholders’ premiums will either decrease or increase by $20 or less per month under Risk Rating 2.0.
Of those seeing increases, 689 policyholders will see an increase of $20 or more per month, and 4,452 policyholders will see $20 or less per month. Immediate decreases will occur for 2,606 policyholders.
How will flood insurance changes affect Vermont?
In Vermont, FEMA says 92% of current policyholders’ premiums will either decrease or increase by $20 or less per month.
Of those seeing increases, 252 policyholders will see an increase of $20 or more per month, and 1,976 policyholders will see $20 or less per month. Immediate decreases will occur for 1,103 policyholders.
How will flood insurance changes affect Connecticut?
In Connecticut, FEMA says 91% of current policyholders’ premiums will either decrease or increase by $20 or less per month
Of those seeing increases, 3,172 policyholders will see an increase of $20 or more per month, and 18,917 policyholders will see $20 or less per month. Immediate decreases will occur for 12,740 policyholders.
Legislators push back against Risk Rating 2.0
While FEMA says most flood insurance policyholders will see a difference of $20 or less per month, a group of legislators from New Jersey, Texas, Louisiana and a handful of other states recently penned a letter to House Speaker Nancy Pelosi and Minority Leader Kevin McCarthy expressing concern over “potential double digit rate hikes.”
“The additional burden of up to double digit rate hikes by FEMA for our constituents, especially those in low- and moderate-income communities is too much for them to bear,” they wrote. “Massive rate changes should be subject to additional scrutiny and review by Members of Congress in a long-term reauthorization, not arbitrary FEMA deadlines.”
Some states are expected to see larger rate hikes than others, due to their elevated flood risk and how homeowners there have historically been paying far less than that estimated risk.
The legislators requested a delay in Risk 2.0 implementation, but FEMA plans to move ahead with it for Oct. 1. Groups like The Pew Charitable Trusts have hailed the forward momentum.
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States where insurance premiums have exploded
Looking at insurance premium data reveals a lot. If a location is seeing an increase in insurance premium volume, it could be a sign of economic development as new homeowners and businesses require policies.
It could also be an indication of underlying issues. For example, a place prone to flooding, like Louisiana, may see more expensive premiums.
Another example would be Georgia, where the most accident-prone highways have led to a spike in auto insurance costs.
That’s why we’ve decided to analyze state-by-state insurance premium data sourced from the Insurance Information Institute (III) to tell you which states and their residents have seen the biggest increases in insurance premium costs over the last decade.
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BIRMINGHAM, Ala. (WBRC) – Rain continues to be a common theme across Alabama in 2021 as some cities have reported multiple damaging floods. Most recently, tropical system Nicholas prompted catastrophic flooding in Tuscaloosa, resulting in two deaths.
If the significant weather events this year have prompted you to consider purchasing flood insurance, acting in the coming days could save you money.
Nearly all flood insurance policies are administered through FEMA’s National Flood Insurance Program, or NFIP. It will transition to a new system on October 1. The overhaul is called Risk Rate 2.0, which calculates the policy costs based on the size and value of a home rather than flood zones.
Alabama EMA Director Brian Hastings believes property owners should consider all costs when creating emergency preparedness plans.ADVERTISEMENT
“If you wonder if you need flood insurance, ask this question: ‘Does it rain?’ And if the answer is yes, maybe you should consider it,” Hastings adds. “Because one inch of water is usually $25,000 of damages and most flooding events are not covered by homeowners insurance.”
Some 21% of Alabamians insured through the NFIP will see a rate drop. The remainder will incur a modest increase, about $10 a month. Less than 3% will pay more than $20 extra a month.
“If you live in a high-risk area with a lot of rain, the probability of you having some type of flooding event within the 30 years of your mortgage is likely 25%”, Hastings explained. “If it does flood and you lose $25,000 of your home or things that you treasure, you can’t get those back. FEMA is not going to make you whole and you’re left the burden of all the expenses.”
In 2021, the NFIP has already paid out more than $1.1 billion in flood insurance losses in Alabama.ADVERTISEMENThttps://974620d7b7a47d8b0fe44cc1375f0cf1.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html
“What we found over time is that 90% of the cost of disasters are caused by flooding across the United States,” Hastings said.
Those who carry flood insurance will be given the option of keeping the current premium or transitioning to the new system in April.
When shopping for flood insurance, experts remind consumers that the NFIP has set claim limits which may not cover some items like living expenses, which may be covered by a private insurer.
When determining whether to purchase flood insurance through the NFIP or private insurance, it’s important to know:ADVERTISEMENT
the actual cash value of the coverage
whether it covers alternative living expenses
if debris removal is covered
the waiting period before a claim is fulfilled
the policy’s rebuild limit
whether the insurer can cancel the policy
It’s important to note: those who have properties outside a designated high-risk flood zone can still obtain insurance through the NFIP or through private insurance.
Birmingham residents who have questions about the National Flood Insurance Program can contact the city’s Hazard Mitigation Services at 205-254-2479.ADVERTISEMENThttps://974620d7b7a47d8b0fe44cc1375f0cf1.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html
Policy holders who live in a city or county involved in the NFIP’s Community Rating System or CRS could benefit from additional savings. Those local communities include Birmingham, Decatur, Homewood, Hoover, Tuscaloosa, and Pell City.
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Citizens Property Insurance Corporation could be dropping support for its independent agents, should a controversial proposal by its chairman gain more traction.
On Wednesday, chairman of the board of governors Carlos Beruff resubmitted his proposal to cut independent agents out of Citizens’ policy underwriting and sales process. The board then instructed company staff to research financial information from large companies that directly sell insurance over the internet.
Beruff had first proposed the idea to cut independent agents from policy sales and underwriting in January, but it was met with opposition from agents and other industry executives.
According to Beruff, paying commissions to agents helps increase the company’s policy count. But if Citizens takes on too many policies when a natural disaster hits Florida, its claims-paying capacity could be overwhelmed, and all insurance customers in the state would have to be assessed to balance the deficit, Beruff and other officers and legislators warned.
Citizens has about 700,000 policies as of September 18, and is expected to reach or exceed 765,000 by the end of 2021.
As an insurer of last resort for the state of Florida, Citizens’ success as a non-profit insurer relies on its ability to prevent business growth and to transfer policies to private insurers. But Citizens’ consumers significantly grew in recent times, either due to private insurers raising their rates considerably, or dropping coverage altogether for older homes and/or areas with high claims rates – issues that have been linked to exacerbating severe weather and mounting insurance fraud cases in the state.
Citizens president and CEO Barry Gilway objected against the proposal and disagreed with Beruff’s argument that cutting out agents would reduce the insurer’s policy count. He also opposed the idea that agents were an unnecessary expense, pointing out that Citizens’ 7% commission is significantly lower than the 11%-12% that agents get through private insurers, which should also dissuade agents from placing consumers with Citizens. However, the majority of Citizens’ board members overrode the president.
South Florida Sun Sentinel reported that Citizens relies on approximately 7,500 independent agents from 2,500 agencies to exclusively sell its windstorm and property insurance to customers who are unable to obtain coverage elsewhere. Florida’s legislature would have to approve Citizens’ switch to a direct sales model.
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The country’s flood insurance market is slowly transitioning toward private insurers providing additional options to the federal government’s program for those seeking coverage, according to a new AM Best report.
But private sector carriers are being selective, tending to avoid risks in flood-prone areas and concentrating more on commercial properties than homeowners, an AM Best report shows.
Also the report finds that private insurers tend to avoid flood-prone areas, noting that Florida experiences tropical systems more frequently than any other state and represents about one third of the total National Flood Insurance Program (NFIP) insured value. Yet Florida represents only about a quarter of the total flood premium, partially illustrating the larger issue that the NFIP is subject to an inherent risk of adverse selection.
“If private insurers are able to price risks individually, they will cherry-pick the best risks with pricing better than the NFIP’s subsidized rates, leading to further adverse selection,” said Christopher Graham, senior industry analyst, AM Best.
The NFIP still bears the heaviest burden of the U.S. flood market, but private flood insurers generated almost $3.1 billion in total direct premium during 2016-2020. The $735 million in direct premium in 2020 represented the largest amount during that period.
The slow shift toward more private sector involvement comes a time when the federally operated National Flood Insurance Program (NFIP) notched a $20.5 billion shortfall earlier in the year, a figure that includes losses dating back to Hurricane Katrina in 2005.
The NFIP is administered by the Federal Emergency Management Agency, which has developed Rating 2.0, a strategy to address pricing inefficiencies and curtail any adverse risk selection by moving all properties to a true risk-based rate. The new NFIP rate structure is scheduled to take effect Oct. 1, 2021.
Under Risk Rating 2.0, the annual premium rate is expected to decline for a quarter of policyholders obtaining coverage through the NFIP. However, many will see their rates increase and reach their full risk rate in approximately five years. Eventually, the new rating measures should lead to more adequately priced NFIP risks and more competitive coverage offered by private insurers.
According to Best analysts, higher premium costs for federal flood insurance “should make the private insurance pricing more competitive” and drive more insureds to the private market.
“This should help better spread the flood risk among private carriers and the NFIP, as well as create a better overall flood insurance market for customers needing the coverage,” said David Blades, associate director, AM Best.
Authorization for the NFIP is currently set to expire at the end of this month unless Congress acts to renew it.
In recent years, Congress has been unable to pass reform legislation or a long-term extension for the NFIP but has instead passed about a dozen short-term extensions. Last year, President Donald Trump signed a one-year extension passed by Congress right before the NFIP expired.
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Citizens Property Insurance Corp. president Barry Gilway said at a Wednesday board of governors meeting that the organization is considering “all ideas to reduce exposure” as policies mount by the thousands.
Gilway said Citizens is accepting policies at a rate of 5,000-6,000 per week as private market insurers withdraw coverage amid significant losses.
Citizen’s policy count is on pace exceed 760,000 by the end of the year, which could push the company’s exposure growth to more than $230 billion.
“I think it would be optimistic to consider that we are going to get any significant depopulation activity until probably the second or third quarter of next year,” Gilway said.
Created by the Florida legislature as the insurer of last resort, Citizens provides insurance to property owners unable to find coverage in the private market.
Gilway said the increase in policies has already had an impact on staffing, particularly at Citizens’ call center where calls have increased to more than 86,000 per month, up 59% from 2020.
At a Tuesday Exposure Reduction Committee meeting, Citizens officials offered proposals that would refer potential policyholders to the private market.
Any such proposals would likely have to go through the Florida legislature, which reconvenes in January 2022.
“At this point, everything is on the table as we try hard to support the development of a stronger private insurance market and stabilize the role of Citizens as the market of last resort,” said Nelson Telemaco, chairman of Citizens’ Exposure Reduction Committee.
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If you are concerned about mold in your home, you undoubtedly understand the danger. According to a documentary called Moldy, more than 50% of U.S. homes have a mold problem. Worse yet, 28% of the U.S. population carries a gene that makes them susceptible to mold-related health issues. If you’re dealing with mold, you are probably wondering, “Does homeowners insurance cover mold?” Here, we’ll answer that question as well as dive into how standard homeowners insurance deals with mold claims.
When is mold damage and removal covered by homeowners insurance?
Insurance carriers are very clear about whether homeowners insurance covers mold damage and removal. Some policies do not cover mold at all. Say you’re located in an area that regularly floods or live near the ocean. Mold from water damage or humidity is such a predictable occurrence that insurers don’t want to pay for its removal.
When an insurance company does cover mold, it is only under certain conditions. In a nutshell, it all comes down to what caused the mold and whether the thing that led to mold is covered under your policy.
Let’s say your house caught on fire and the fire department sprayed tons of water putting it out. However, because the property remained damp after the fire department left, there is mold in the basement and main house. Does homeowners insurance cover mold? In this case, because fire damage is covered, so is mold resulting from the fire.
Here’s a sample of situations in which mold is likely to be covered:
Fire
Weather damage to roof (including wind and hail)
Lightning
Falling objects damaging roof
Appliance malfunction
Weight of snow or ice on the roof
Frozen or burst pipes
Overflow from plumbing system, heating or air conditioning unit, or a household appliance
According to Hippo Insurance, mold is covered on a case-by-case basis. They call it “one of the more complex categories of your homeowners insurance policy.” The tricky part is tracking down how the mold started and figuring out if the genesis of the mold is something that homeowners insurance would normally cover.
If the mold is due to a flood, you would need to have flood insurance in place for the mold to be covered.
How much will insurance cover for mold?
It depends on your policy. If mold is excluded, no amount of fighting with the insurance company will change that fact. For companies that do provide mold coverage, many insurers limit mold claims to between $1,000 and $10,000. Given that widespread mold throughout the house could cost up to $30,000 to remediate, you could find yourself out of pocket, even with a policy that covers mold.
When is mold damage and removal not covered by homeowners insurance?
Even if you learn that your insurance policy covers mold damage, there are situations under which they will not pay out. Your insurance company will not cover a claim if it is determined that it’s a result of neglect. For example:
A continuously leaking showerhead
Windows that are not properly sealed
A leaking skylight
A leaking pipe that you have not attempted to repair
Any type of flooding, unless you carry flood insurance
Does renters insurance cover mold?
Typically, renters insurance does not cover mold. For any company that does provide such coverage, it again depends on whether the mold was caused by an event covered by your renter’s policy or if it is due to negligence. So if the roof of your rental home is weighed down by ice, and water begins to seep in as the ice melts, any resulting mold may be covered.
However, if the kitchen sink has been leaking for weeks and you did nothing to keep the area below the sink dry, it is unlikely growing mold would be covered by your policy for two reasons: The mold was not due to a covered peril and you could have mitigated the problem.
Filing a mold insurance claim
It’s important to address mold insurance claims the moment you discover mold. Getting someone out to begin drying the property within the first 48 hours can help contain mold growth. If you don’t receive an immediate response from your insurance company, stick with it. Be courteous, but firm. The longer you wait, the more time the mold has to grow.
Insurers have different methods for filing a claim. Some will take your claim by phone. Others will encourage you to fill out an online form. Follow your insurer’s lead.
No matter how the insurer prefers a claim be made, keep accurate and detailed records of everyone you speak with at the insurance company, including date, time, and what they told you.
How can I get insurance to cover mold?
How successful you are in getting the insurance company to cover mold depends on the coverage you’ve paid for. As you wait to hear back from the insurer, take a look at your homeowners insurance policy. If you don’t have one, ask your insurance company to email you a copy. Check the “declarations page” for the following information:
Effective date of the policy
Policy limits for mold
When mold coverage is included and under what circumstances it is excluded
If your homeowners policy specifically excludes coverage for mold, there is nothing more that can be done and you’ll need to begin remediation on your own. If they provide coverage in certain circumstances and your situation fits, you’re in luck. It may take some effort on your part but taking the following steps will get the ball rolling:
After you call, send an email outlining the details of your claim, including when and where you found the mold.
Photograph or videotape all areas of mold and damaged property.
Make sure to not exaggerate the damage or loss. Doing so can give the insurer the right to reject the mold claim.
What to do if your claim is denied
If your claim is denied because your homeowners policy excludes mold damage or because the mold was caused by something other than a covered event, there’s not much you can do but call a contractor who deals with mold and make repairs on your own dime. If you do have coverage but the insurance company continues to deny your claim, you have options. They include:
Stay calm. Insurance claim denials are not rare. A claim can be denied because the insurance company has a good reason. It may also be a matter of someone making a simple mistake.
Continue to keep accurate and detailed notes of all communications you’ve had with anyone from the insurance company. Document phone calls, emails, and in-person meetings.
The insurance company should have sent a denial letter. Read it over to learn why they denied coverage. If you did not receive a letter of explanation, request that they provide one.
File an appeal with the insurance company. When doing so, provide copies of evidence, including photos and videos. Also take photos of anything you did in advance to prevent the problem. For example, if the mold is caused by a roof with a history of leaking, take a photo of any receipts you have for supplies to repair the roof (before the latest incident occurred) or the receipt from the company you hired to make repairs.
If the insurance does not reverse its decision, you can contact your State Department of Insurance to file a complaint. Keep in mind, the State Department of Insurance can only help if your policy specifically includes mold coverage.
What insurance companies cover mold?
While not every homeowners insurance company covers mold, here are a few that will:
Lemonade
As with most companies that cover mold, Lemonade will take care of mold caused by a covered loss, like ice, frozen pipes, fire, or lightning. In addition, the mold must be hidden away — in walls, beneath floors, or in ceilings — for it to be covered. In other words, Lemonade requires the mold to be somewhere you would not normally notice by just walking by.
American Family
While American Family will not cover damage that occurs over time, they do provide coverage for mold caused by sudden and accidental events.
Nationwide
Nationwide emphasizes that mold must be a result of a covered peril. A Nationwide policy may also cap the amount it will pay toward mold remediation.
Buying additional mold insurance
If mold coverage is important to you, the first thing you should do is read through your current home insurance policy to learn if you already have it. If not, find out if your company offers a mold rider, an endorsement you can buy that adds mold coverage to your standard homeowners insurance policy. Just as you can purchase a home insurance rider for water damage, some companies allow you to purchase a mold rider.
If not, it’s time to shop around for an insurance company that does offer the coverage you seek, even if it means adding a rider to your policy. Keep in mind, mold damage riders are not available in every state.
What do you do if you have mold in your house?
If you discover mold in your home you need to take action before it spreads.
Step 1: Check your homeowners policy to learn if mold is covered
Step 2: If not, call a professional mold remediation company to remove the mold
Step 3: If you can’t afford a professional company, a home remedy may help. Before you begin, put a mask on to prevent breathing in mold spores, cover your clothes from head to toe, and wear gloves. One common home remedy includes baking soda and vinegar. Here’s how it works:
Mix two parts baking soda with one part vinegar and one part water
Mix it into a thick paste
Spread onto the moldy surface and allow it to dry
Scrub the area. Repeat the process until the mold disappears
A home remedy may work for a small area of mold, like in a shower stall, but bigger jobs will almost certainly require the help of a professional crew.
Preventing mold growth
Ideally, you will be able to prevent mold from occurring in the first place. Here are steps offered by the CDC to keep your home mold free:
Keep humidity levels no higher than 50%
Use exhaust fans that vent to outside your home
Repair leaks to the roof, walls, or plumbing so mold does not have a chance to grow
Clean up and dry out your house within 24-48 hours of a flood
Add mold inhibitors to paints before painting
Clean bathrooms with mold-killing products
Remove or replace upholstery and carpets that have been soaked
Treating and removing mold
Whether homeowners insurance covers it or not, the best way to treat and remove mold is to leave the task to professionals. If you’re on the hook to pay for the job, look into applying for a credit card with a 0% introductory offer or a low-interest personal loan. And because mold can lead to serious health problems, consider the pros and cons of a home equity loan to come up with the funds to make your home safe.
So, does home insurance cover mold? The answer is complicated. It depends on the specific insurance company and the precise wording of your policy.
Please call Lee from USAsurance Powered by WeInsure & Calle Financial. 954-270-7966 or 833-USAssure at the office. My email is lee@myUSAssurance.com . I am Your Insurance Consultant about Home Insurance, Auto, Flood, Private Flood, Car, Life Insurance, Mortgage protection, Financial Products, Business & Commercial Policies, & Group Products for business owners to give Employees benefits at no cost to the employer. My email is lee@myUSAssurance.com
Auto loss costs climbed rapidly this year as vehicle traffic returned nearly to pre-pandemic levels and motorists adopted more risky behaviors, the American Property Casualty Insurance Association said in a white paper released on Monday.
An increase in claim frequency and severity comes as supply-chain disruptions leave replacement parts in short supply, and the number of auto thefts reached the highest level in a decade, APCIA said.
The National Highway Traffic Safety Administration estimates that 38,680 people died in motor vehicle crashes in 2020, a 7% increase over the previous year and the largest number of traffic deaths since 2007.
“Insurers are increasingly concerned that since the start of the pandemic, Americans have embraced riskier driving behavior, such as impaired driving, speeding, and failure to wear a seatbelt,” stated Karen Collins, APCIA’s president of personal lines.
Only a year ago, insurers issued an unprecedented $14 billion in premium refunds after being pushed by consumer advocates because of plummeting clam numbers due to COVID-19 lockdowns.
But as those restrictions eased vehicle traffic returned nearly in full. U.S. Department of Transportation data released last month indicated that the number of miles driven in June 2021 was only 1% less than the number of miles driven during June 2019.
Motorists returned to more dangerous roads. The report notes that CCC Intelligent Solutions reported a 40% increase in collision/liability only claims and a more than 30% increase in all auto claims during the second quarter of 2021. CCC had recorded decreases in claims ranging from 10% to 40% during 2020.
Over the past five years, a 37.8% increase in the average severity of auto claims has more than been offset by a 30.4% decrease in frequency, APCIA said. The biggest surge in inflation rates since 2008 may push that trend even further.
The report says the US Labor Department posted a 5.4% increase in the Consumer Price Index from the year earlier. Housing used cars and gasoline were blamed for much of the increase, the report says.
The price of car and truck rental costs jumped 87.7%, used cars and trucks prices increased 45.2% and new vehicle prices climbed 5.3%.
The report said the increased prices for new and used vehicle is expected further increase severity. Total losses make up about 20% of auto claims, the report says, citing CCC data.
In the meantime, auto thieves have been busier than ever. The report cites National Insurance Crime Bureau data showing the number of auto thefts climbed to 873,080 in 2020, compared to 794,019 in 2019 and 775,240 in 2010. NICB reported in March that the number of catalytic converter thefts averaged 1,203 per month in 2020, compared to an average of 282 a month in 2019 and 108 in 2018.
The report says auto repair and replacement costs are expected to remain elevated “well into 2022.”
“Insurers continue to monitor the situation closely, though as frequency and severity continue to rise, insurers may be forced to pass these loss costs along to policyholders.,” the report says. “Given the trends, insurers are strongly encouraging drivers to minimize their risk by avoiding risky driving behaviors that may result in a loss.”
The Home Insurance Guru 