I don't have a bank. I own my home.
Why don't I want my insurance company to know?
My city doesn't care.
This will be done by professionals, not by me. There's no drywall in the area that it's been identified, and yes so far I think a small area. need to find the water source though. Must be a small but regular one.
We had a full inspection when we purchased 6 years ago. We have had previous testing that did not find anything. I am going to review previous disclosure to see if it was disclosed, but regardless I will have to disclose it (if remediated professionally backed by a warranty and it's not a huge problem, I don't think it will be too much an issue).
I know it's less than 20 Sq FT. What I want to understand (besides what it's gonna cost) is the legal ramifications. Who do I have to 'report' to?
I believe it will be from the sounds of it. You did everything right by having the inspections and testing from day one for you. If it's bigger and you hire a professional, your insurance co. may find it on a renewal search. Kind of like a ticket you get in a car. If they see a DUI on your record they can cancel or make the premiums so high you can't afford it. If they see a mold remediation was done, the redflags go up.
You may need to pull a permit depending on the city requirements. Good that you don't have a bank. If it is less than 20 feet, then it will be considered a minor repair and a permit may not be an issue (rules vary from state to state and city to city) and the company you hire won't have to pull a permit. Either way, on paper they can legally call it a minor removal of damp material and a preventative treatment. The words mold nor remediation will not need to be used.
I don't know your rates in your area, but we charged 60/ft if it was less than 100SF of total repair. The no drywall will help a little on the price. Drywall is cheap. Finish work is what cost.
It the area is behind a bathroom I suspect you will find a bad pipe joint. Make sure the area that the moisture is coming from has no issues. This chyt runs behind the walls pretty easy.
Let me sort of help you understand a mold issue in real world terms. Most commonly a child becomes ill from it and suffers pulmonary damage. They are the most vulnerable. However anyone with sensitivities, allergies, asthma etc. can have serious reactions to it. An attorney will start with the current insurance company covering the property and can sue all the way back to the original builder, including all previous chains of owners if there was no remediation evidence.
Since there is no starting point of time they go back to the original build date. They do a permit history search. They go after any roof work, plumbing work etc. If there is remediation evidence, they sue the company that signed off on it, and everyone forward from that point. If the remediation co. is no longer in business, they will sue anything that has money and an interest in the house at the point. Banks/Insurance companies will be accused of not having done proper inspections or taken appropriate actions if they knew. Speaking as a licensed contractor that has had remediation certification from my training, in the past 7 years or so, insurance companies will not write a policy that covers any mold in homes in a high mold claim area, or a home that has had a previous mold issue. It will be stated in the policy that mold is not covered. And you will sign a document stating you understand that fact. It requires a separate rider. That rider generally has a price limit. That protects them from being sued, for more than that rider amount. If your policy does not specifically exclude it, and there is no separate rider, the attorneys go after them for the entire value the house is insured for. If you as a homeowner had a mold problem that you fixed and did not disclose at selling, you are a target for any future owner that has any problems.
The caveat here is the 20 foot rule. If it is less than 20 feet it isn't considered a health risk and does not require disclosure.
Not trying to scare you at all here. Just trying to educate. Mold is a litigation goldmine for attorneys and nightmare for the others. I live in a neighborhood that has a house that was foreclosed on, that was purchased new for 576K in 2007. It has mold that was caused from a workmanship defect (the original builder). It has not sold and it has a price of 185K on it at this point. That is the price of the lot and a foundation it sits on. To repair this one will require the removal and replacement of an entire load bearing wall and multi level chimney. It was noones fault but the builders. He declared BK 3 years ago. The bank was left holding the bag. I will wager the house will be torn down before it ever sells.
The hurricanes from the past 7 years has changed EVERYTHING for the insurance industry. Some will take exception to the 20 foot rule and simply refuse to cover any property with any mold issue period. Mold has cost them many millions of dollars of pay outs since these storms. So many repairs needed to be done so quickly that mold was never properly addressed at the time.