Is mold a serious issue in Austin? Should I pay $300 extra to cover it in an insurance policy? (Howe: home owners insurance)

[eileenkeeney]

ok,
So I have this option on a home insurance policy, to buy additional mold coverage (meaning they will even come out and inspect/test for mold issues).

It is over $300 additional per year.

However, if I wait and get it later, it will cost even more (at that point they assume I know something they do not).

The house shows no signs that it has had water damage (except where the hail damaged the roof and they had to repair some of the internal overhead).

Usually cost is associated with risk. So the fact that the mold coverage is so high, has me wondering if the risk is also high.

[eileenkeeney]

Actually the $300 additional cost only covers up to 25% of a mold issue, to get 100% coverage on it it is an additional $500, and almost doubles the cost of the home owners insurance.

Why is this so expensive?

Why do insurance companies require additional insurance for this risk anyway?
They do the same with Flood and Earth Quake.

Why don't they split out the stuff I really don't care about, like my cheap and unnecessary personal belongings (TV, Furniture, and other frivolous stuff).

[Bo]

It can be an issue in Texas for other reasons than leaks and flooding. With high outdoor humidity and warm temperatures making air conditioning a requirement for so many months of the year, condensation can happen in walls and lead to hidden mold inside exterior walls. That problem is expensive to remediate.

I'm allergic to mold, so I wouldn't go without coverage. Some molds are toxic to people who aren't allergic, so their presence could make your home legally uninhabitable.

[Bo]

Originally Posted by eileenkeeney

Why do insurance companies require additional insurance for this risk anyway?

It used to be a required component of homeowners policies in Texas and it started making policies so expensive that insurers were pulling out of the state. The legislature passed a law making it optional. It's an expensive option because the claims can be very expensive.

[eileenkeeney]

How many people actually pay the extra money for this?

According to the person selling me this policy, very few actually do, and this risk is not really very high.

I do not think my lender is requiring it.

[austinnerd]

Originally Posted by eileenkeeney

How many people actually pay the extra money for this?

According to the person selling me this policy, very few actually do, and this risk is not really very high.

I do not think my lender is requiring it.

i don't have it, I don't know anyone who does. Also, I don't know anyone who's been affected by mold in their home, nor does anyone I know know anyone. I've read about it happening to some folks, so it's not like it's a myth, but I would think that you would have to have a very specific set of circumstances to have this be a problem. Just like anything else, you have to look at your own specific circumstances and judge whether or not you're in the demographic that might be more likely to have this problem (e.g. purchasing an older home that might have had roof leaks or in-wall plumbing issues in the past, homes that run humidifiers in the winter, older homes occupied by older people who may not be the best at maintaining or even noticing hvac/plumbing issues).

[10scoachrick]

It does seem a bit strange how Texas handles the 'contents' portion of homeowners insurance...as a percentage of the value of the house. In our case, it may make sense dollar-value-wise; but, our aunt's 'contents' amount could have paid for the actual home contents 4-5 times over.

Our SIL's house sustained considerable mold damage which was covered by insurance. Not sure of all the details but the amount was north of $50K and they were out of the house for about 6 months during remediation. Good luck and I hope you get some helpful responses. We've not had any mold issues in our 2 years here(play: knock on wood sound).

[Austin97]

Originally Posted by eileenkeeney

How many people actually pay the extra money for this?

According to the person selling me this policy, very few actually do, and this risk is not really very high.

I do not think my lender is requiring it.

in the past there were massive law suits and claims arising from mold. It was a trial lawyer feeding frenzy and the insurance companies lost their shirts on it. People claimed all sorts of medical ailments caused by mold such that their house effectively had to be torn down and rebuilt.

The science behind it is pretty shoddy - if you keep your house in good shape and dont have any water leaks you will be fine. Even if you do get mold it most likely isnt even a big deal.