Rental Property Insurance for Mold and Asbestos

One rental property insurance coverage that’s becoming much more difficult to obtain is a type of environmental insurance that specifically covers mold, fungus, and related issues. The number and magnitude of mold claims by tenants of both residential and commercial type properties have become a real challenge to the insurance industry, with some highly publicized lawsuits claiming huge property damage and severe  personal injury claims. Although certain insurance companies still offer limited coverage for mold and related causes, specifically inquire as to the exact protection included in your policy. Some policies don’t cover actual damages for property and personal injury but do offer a legal defense.

The best  way to avoid claims of property damage and personal injury from mold is to properly maintain your property and only turn over possession  to the rental unit or suite in good condition that’s documented in writing. The challenge with most mold claims is that water intrusion and the subsequent  concerns about mold typically occur within the tenant’s space in areas where the owner has no access or control. Or the tenant can even be the cause of the source of moisture through negligence or inadequate cleaning.

Thus, the rental property owner must rely on the tenant to minimize the likelihood of mold as well as report any concerns immediately. Many owners now use a lease addendum advising tenants  of their responsibilities in this area. Rental property owners should respond to all tenant concerns  promptly and professionally while routinely inspecting accessible areas.