Uncovering the Hidden Dangers of Mold Insurance Gaps for Homeowners
In 2018, Brandi Schmitt and her family faced a nightmare that would change their lives forever. A nor’easter struck their Maryland home, causing extensive damage that would ultimately lead to the discovery of dangerous mold infestations. What started as a routine insurance claim quickly spiraled into a costly and heartbreaking ordeal that would test the limits of their resilience.
The Storm that Started it All
When the nor’easter hit, the Schmitt family was unprepared for the devastation that would follow. Intense winds ripped shingles, gutters, and siding off their home in Lothian, Maryland, leaving them vulnerable to the elements. With no electricity for three days, the family faced the challenge of spoiled food in the refrigerator and water leaking into their home.
As soon as power was restored, Brandi Schmitt contacted her insurance company, USAA, to report the damage. An adjuster visited the home a week later and determined that the 5,000-square-foot roof needed a total replacement. However, delays in processing the claim allowed snow and water from subsequent storms to seep into the home, leading to the discovery of mold.
The Hidden Danger of Mold
An independent specialist initially found no mold in the home in May 2018, but a follow-up investigation in October revealed visible moisture and an increased moldy odor. By this time, the Schmitt family had already begun experiencing health issues, including rashes and coughs. Tragically, their beloved pets also fell victim to the mold infestation.
A test result from November 2018 showed high levels of antibodies in Brandi Schmitt’s blood from exposure to aspergillus niger, a common mold. Faced with mounting health concerns and the realization of the extent of the mold damage, the family made the difficult decision to move out of their home for good.
Legal Battles and Financial Struggles
Despite paying for extra coverage for fungus, wet, or dry rot in her policy, Schmitt found that USAA did not adequately address the mold issue. Air samples taken in January 2020 revealed problem mold concentrations in the home, further complicating the situation. In 2019, Schmitt and her husband filed a lawsuit against the insurer, alleging breach of their homeowner policy.
After a lengthy legal battle, a unanimous jury ruled in favor of Schmitt on March 7, 2023, awarding her compensation for interior repairs and additional living expenses. However, the ongoing dispute over the extent of the damages highlights the challenges faced by homeowners dealing with mold-related insurance claims.
The Rise of Mold Insurance Gaps
Schmitt’s story is a stark reminder of the dangers of mold and the limitations of insurance coverage. Mold damage is a common issue faced by homeowners, with water damage accounting for a significant portion of insurance losses. As severe weather events become more frequent and powerful, the risk of mold infestations is only expected to increase.
Following high-profile lawsuits in the early 2000s, insurance companies began to limit or exclude mold coverage in their policies. The fear of costly repairs, health risks, and legal liabilities drove insurers to take a cautious approach to mold claims, leaving many homeowners vulnerable to financial hardship.
Navigating the Complexities of Mold Coverage
Today, standard homeowners policies typically do not cover mold, fungus, wet, or dry rot unless the damage is the result of a covered peril. Homeowners may need to add a rider to their policy to cover mold removal stemming from other circumstances, such as water backup or hidden water damage. However, the limitations and exclusions in insurance policies can often come as a surprise to policyholders.
Understanding the intricacies of mold coverage can be a daunting task for homeowners. Policy language can be convoluted, making it challenging to decipher what is and isn’t covered in a standard insurance policy. Additionally, insurance regulations vary by state, adding another layer of complexity to an already confusing process.
The Impact of Mold Claims on Homeowners
Mold claims can have far-reaching consequences for homeowners, ranging from costly repairs to potential non-renewal of policies. Complaints about insurers limiting coverage on mold are not uncommon, with some policyholders facing difficulties when it comes time to renew their policies. Insurers have the right to choose not to renew a policy based on various factors, including prior loss history.
As the prevalence of mold-related insurance claims continues to rise, homeowners are urged to carefully review their policies and seek professional advice to ensure they are adequately covered. Insurers are closely monitoring the impact of climate change on insurance risks, including the potential for increased mold infestations in the future.
The Long Road to Recovery
For Brandi Schmitt and her family, the battle against mold continues to this day. Six years after the nor’easter struck their home, they still face the challenges of repairing and restoring their property. Despite the setbacks and hardships they have endured, the Schmitt family remains determined to reclaim their home and rebuild their lives.
In Conclusion
The case of Brandi Schmitt highlights the hidden dangers of mold insurance gaps and the challenges faced by homeowners dealing with mold-related claims. As severe weather events become more frequent and powerful, the risk of mold infestations is expected to increase, leaving homeowners vulnerable to financial hardship and health risks. By understanding the complexities of mold coverage and seeking professional advice, homeowners can better protect themselves from the devastating effects of mold damage.