Additional Homeowners Insurance Options in Oregon- Fungi, Wet Rot, Dry Rot, or Bacteria

There are different “options” or endorsements you may choose to add to your homeowner’s policy here in Oregon. One of those options, which is discussed in this blog, is Fungus, Wet Rot, Dry Rot, and Bacteria. Normally, policies exclude coverage for the presence, growth, spread of any of these things. 

Limited Fungi, Wet Rot, Dry Rot, or Bacteria Coverage Endorsement


 Section I Property Coverage limit of liability for the Additional Coverage Fungi, Wet Rot, Dry Rot, or Bacteria $10,000
Section II Coverage E aggregate sub-limit of liability (damages others) for Fungi, Wet Rot, Dry Rot, or Bacteria $50,000

This is the MOST the insurance company will pay out during a policy period, regardless of how many claims made, the number of locations insured under this endorsement, or the number of occurrences.

For the purposes of definition for this policy endorsement, fungi means any type or form of fungus, including mold or mildew, and any mycotoxins, spores, scents or by-products produced or released by fungi. 


The following additional coverage is added for the insured and the insurance company will pay up to the amount shown in policy for the following:

The cost to remove fungi, wet/dry rot, bacteria from a covered proeprty

The cost to tear out and replace any part of the building or other covered property as needed to gain access to the fungi, wet/dry rot, or bacteria

The cost of testing of air or property to confirm the absence, presence or level of fungi, wet/dry rot, or bacteria whether performed prior to, during or after removal, repair, restoration, or replacement. The cost of this type of testing will be provided only to the extent that there is a reason to believe that there is the presence of any of it.

Loss payable Section I- Property Coverage

Things to be aware of with this endorsement: the coverage only applies when such loss or costs are a result of a peril insured against and only if all reasonable means were used to save and preserve the property from further damage at and after the time of loss. Also, if there is a constant or repeated seepage or leakage of water or the presence or condensation of humidity, moisture or vapor, over a period of weeks, months or years unless such seepage or leakage and the resulting damage is unknown to all insureds and is hidden within walls, ceilings, or under floors.


This option/endorsement does not increase the policy coverage E or F limits of liability, and the sub-limit shown in the endorsement, if any, is the most the insurer will be liable for the total of all damages arising directly or indirectly out of the actual, alleged, or threatened inhalation of, ingestion of, contact with, exposure to, existence of, or presence of any fungi, wet/dry rot, or bacteria. This limit applies regardless of number of claims made, number of insureds, or persons injured. 

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By Sarah Green August 15 2018 Posted In: Homeowners