Q. A pipe in my attic broke which caused flooding in a down stairs hall, bedroom and bathroom. When an assessment was done, mold was found. My policy has a cap of $5,000 on mold remediation. The contractor estimates for demolition and repair that are necessary to correct water damage have been categorized as mold remediation by my insurance company.

A. As we have seen in many water related events, mold is often the result of a covered water loss. There are of course other mold losses such as sick building syndrome cases that may or may not be covered based in the facts of a particular event. I think it is disingenuous for your insurance company to lump all of your damages into mold coverage, especially since you have a cap on mold coverage. It would seem that in your case that without a covered water loss, there would have been no mold. In simple terms, the water came first then the mold. So in my opinion your insurance company should pay for the damage as a water loss and then if you need mold coverage you still have the $5,000 left to help. Sounds like a classic case of the insurance company not looking to give you coverage and instead save some money for the company. Good luck     

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