This happens when you don't verify coverage BEFORE starting work.
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Understanding "Buckets"
Typical Homeowner's Policy Structure
Dwelling
$300K
Water mitigation pulls from here
Personal Property
$100K
Contents coverage
Mold
$10K
This bucket runs out fast!
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Coverage Varies by State
Florida: Typically $10,000 limits (some as low as $5K)
Texas: $25,000 to $50,000+ more common
California: Different regulations and disclosures
Some States: Zero mold coverage unless purchased
Don't assume. Don't guess. Every single policy is different.
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When Is Mold Covered?
Mold from Covered Water Loss
Pipe burst → mold develops = Usually covered up to limit
Pre-existing Mold
Old mold discovered during water job = Often excluded
Maintenance Failure
Unfixed leaky faucet → mold = Usually excluded
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Verify Coverage BEFORE Work
The 5-Step Process
Step 1: Request the declarations page
Step 2: Find the mold limit (look for "fungi" or "mold" coverage)
Step 3: Understand exclusions
Step 4: Document your verification
Step 5: Have the limit conversation with customer
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The Critical Conversation
"Your policy has $10,000 in mold coverage. Based on the protocol, this job is estimated at $18,000. Insurance will cover $10,000. You'll be responsible for approximately $8,000. Are you prepared to pay that difference?"
Get acknowledgment in writing
Do NOT skip this conversation
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Why This Matters
Skip the Conversation
Customer surprised with $8K bill
Disputes, bad reviews
Collection problems
Have the Conversation
Customer understands upfront
Written agreement
Smooth collection
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Key Takeaways
Mold has separate, limited coverage (sub-limits)
Limits vary by state and policy - always verify
Coverage depends on cause (covered loss vs. neglect)
ALWAYS verify coverage before starting work
Have the limit conversation and get it in writing
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Coming Up Next
Lesson 1.2: Third-Party Testing
IEPs and Industrial Hygienists
The protocol - your scope of work
Clearance testing requirements
Why you can't self-certify mold work
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MODULE 1: INSURANCE & DOCUMENTATION
End of Lesson 1.1
Understanding Mold Insurance
Action Item: On your next mold call, get the declarations page and verify coverage FIRST.