PLPennsylvaniahard
A PA HO-3 includes a mold sublimit endorsement. The insured has a $300,000 dwelling limit and a $10,000 mold sublimit. Mold remediation costs $25,000 after a covered water loss. What does the policy pay for the mold remediation?
A$25,000 — full remediation cost because the underlying water loss was covered by the policy
B$15,000 — the difference between actual cost and the sublimit amount
$10,000 — capped at the mold sublimit regardless of underlying cause
D$0 — mold is excluded outright under the PA Standard Fire Policy statute
Why this is the answer
A mold sublimit operates as an aggregate cap on mold remediation, fungi, and bacteria losses arising from any covered peril during the policy period. The $10,000 cap controls regardless of the broader Coverage A limit.
Studying for the Pennsylvania Personal Lines exam?
This question comes from our PL bank. Take a free practice test — no signup.