Mold in homes has become a serious issue. It can often take homeowners by surprise – both physically and financially. While mold remediation should be covered under your homeowners’ insurance policy, insurance companies often fail miserably to fix the problem or pay out the benefits that you’re entitled to.

Case in point

The Rodriguez family owned a home in Orange California. They began remodeling their home and discovered that a water leak had caused toxic mold to contaminate their entire house. They attempted to work with their insurer, Homesite Insurance Company, to have the house decontaminated. Homesite paid for their house to be remediated by American Technologies Inc.; however, after two mold abatement cleanings by the company, the mold had not been completely removed. Homesite reluctantly agreed to a third cleaning which, according to the insurance company, revealed that the house was mold free. Homesite refused to pay any more on the claim.

Not agreeing with the assessment, the family hired their own company to investigate and found that the mold had not been completely removed. They were forced to leave their home and all of their personal belongings. They sued their carrier and were awarded approximately $400,000 in general damages. The court ruled that Homesite breached its contract and obligation of good faith and fair dealing with the Rodriguez’s.

Advice from the trial attorney

According to Robert Scott, a partner with the Advocate Law Group who tried the case, “This was a nice family. They raised their children in this house and lost everything. Consumers should confirm everything in writing and have the insurance company do the same or you’ll end up with a he said / she said situation. It’s very important to get copies of all the reports (from the environmental companies, costs of remediation, plans for removal, etc.) If your insurance company doesn’t hire an environmentalist, hire your own! It may cost you a few thousand dollars, but if you’re right, the insurance company will have to pay. Tell them that you’re doing it – and put it in writing.”

Take action

If your insurance company has failed to properly remediate mold in your home, don’t wait to take action. Mold can be very dangerous – especially to young children who can become hypersensitive to it for the rest of their lives. Contact an attorney experienced in toxic mold cases if you are at loggerheads with your insurer.