Mold and Moisture Problems in Jeddah and Dammam 2025: Hidden Defects Insurance Gaps and Real Protection Solutions

Introduction: A Hidden Enemy in Your Home

If you live in Jeddah, Dammam, or any coastal city in the Kingdom, you know that feeling: humidity that seeps into everything, dark spots that suddenly appear on walls, and a musty smell that won't go away no matter how much you clean. This isn't just an annoying aesthetic problem; it's a real threat to your health and your family's health, and to the value of your most precious investment: your home.

Even more dangerous is that many homeowners believe their mandatory latent defects insurance policy will protect them from these problems. The bitter truth is that most mold and moisture cases are not covered by this policy! In this comprehensive guide, we'll reveal facts that no one tells you and give you real solutions to protect your home and investment.

First: Why Jeddah and Dammam Specifically? The Environment Breeding Problems

It's no coincidence that moisture and mold problems are concentrated in coastal cities. There's a combination of harsh environmental factors that make these areas an ideal environment for problems to grow.

The Deadly Environmental Factors

Jeddah and Dammam are characterized by very high humidity levels, sometimes reaching 90% in summer months, especially during nighttime hours. This high humidity penetrates the pores of concrete and walls, creating an ideal environment for mold and fungus growth.

Added to this is the high groundwater level in many neighborhoods of these two cities, meaning foundations and lower floors are exposed to continuous rising moisture from the ground. The high soil salinity in coastal areas also accelerates the corrosion of concrete and reinforcing steel.

Efflorescence Phenomenon: The Warning Sign

Have you ever noticed those white salty spots that appear on exterior walls or foundations? This phenomenon is called "efflorescence" and it's a serious warning sign. It occurs when water seeps through concrete carrying dissolved salts, then the water evaporates on the surface leaving white deposits of crystallized salts.

Efflorescence itself doesn't harm concrete, but it's definitive evidence of a water pathway through the walls. If this process continues, it will eventually lead to reinforcing steel corrosion and weakening of the building's structural integrity.

Second: Mold - Not Just an Aesthetic Problem

Many people treat mold as an aesthetic problem that can be solved with a new coat of paint. This is a fatal mistake. Mold is a real health hazard and evidence of fundamental failure in the building's insulation and ventilation system.

Health Risks of Mold

Mold releases microscopic spores that spread in the air and are continuously inhaled by residents. These spores cause serious respiratory problems including respiratory tract irritation, chronic coughing, and shortness of breath. They also cause significant aggravation of asthma and allergy symptoms, and may lead to recurring sinus infections. Children, elderly, and immunocompromised individuals are most vulnerable to these risks.

Signs of Moisture Problems

There are clear signs to watch for: appearance of dark or black spots on walls and ceilings, peeling paint and bulging plaster, musty or damp smell especially in closed rooms, water condensation on windows and cold surfaces, and bulging wooden floors or carpet damage.

Moisture's Impact on Property Value

Homes suffering from persistent moisture problems lose significant market value. They become less attractive to buyers and tenants, and require continuous maintenance and repairs that drain your budget. Investing in prevention is much cheaper than treating the problem after it escalates.

Third: Latent Defects Insurance - What It Covers and Doesn't Cover (The Trap Many Don't Know)

Since 2020, latent defects insurance has become mandatory for all residential and commercial buildings in the Kingdom. Many buyers believe this policy protects them from all building problems including moisture and mold. The reality is much more complex.

What is Latent Defects Insurance?

It's mandatory insurance covering fundamental structural defects that may appear after the building is delivered to the owner. Coverage extends to 10 years from the date of occupancy certificate issuance. The developer or contractor bears its cost, and obtaining it is required for building permits. Currently, Tawuniya Insurance leads the insurance pool for this product with participation from 17 insurance companies.

What Does the Policy Actually Cover?

The policy is primarily designed to protect the building's structural safety. It covers damages resulting from design, material, or execution defects that lead to weakness in the building's stability. This includes foundation, column, and beam problems, roof waterproofing failure if it threatens the structure's safety, and fundamental structural defects.

The Trap: What the Policy Doesn't Cover

Here's the surprise many don't know: the policy usually excludes "non-structural" defects. Mold and fungi often fall within the policy's explicit exclusions, especially if considered resulting from poor ventilation or interior finishing defects such as paint or plaster that don't affect building stability.

The policy also excludes water and drainage pipe leaks, moisture damage from misuse or lack of maintenance, grouting defects in bathrooms and kitchens, and gradual damage from high atmospheric humidity.

Fourth: When Is Mold Covered by Insurance? The Only Case

Mold becomes covered by insurance in one main case: if it's a direct and proven result of a structural defect covered by the policy.

Example of a Covered Case

Let's assume there's foundation settlement that led to a crack in the underground water tank. Water leaked from the tank to surrounding walls, causing severe moisture and mold that spread on the ground floor. In this case, the insurance company may be obligated to repair the foundation (the original cause) and resulting damages including moldy walls.

Example of an Uncovered Case

Mold appearing on a bathroom ceiling due to tile grouting leaks or weak floor waterproofing. Or mold in a bedroom due to insufficient ventilation and atmospheric moisture condensation. These cases are usually outside coverage because they're not linked to a structural defect in the building.

How to Prove Mold Results from a Structural Defect?

You'll need a technical report from a certified engineer proving the causal relationship between the structural defect and the apparent damage. This requires careful building inspection and documentation of the problem from its beginning. Keep photos and dates of any problem you notice, and request technical inspection immediately when any signs appear.

Fifth: Other Important Policy Exclusions

In addition to mold, there are other exclusions you should know about.

Main Exclusions

The policy doesn't cover geological condition changes, fire, lightning, explosion, earthquake, and flood risks, tank or water pipe overflow or explosion, any economic losses such as loss of building use or rental income, and expense costs or fines due to delays.

Waterproofing Coverage

The waterproofing coverage period begins 12 months after the policy effective date, provided the insurance company receives the safety confirmation certificate from the technical inspector for waterproofing work. This means the first year may not be covered for waterproofing problems.

Sixth: Preventive Technical Solutions - Real Protection

Since insurance doesn't cover everything, the real solution lies in correct specifications from the start. If you're building or buying in Jeddah or Dammam, these specifications are essential.

Dual Insulation (Water + Thermal)

In coastal city environments, waterproofing alone isn't enough. You need dual insulation combining waterproofing to prevent water leakage, and thermal insulation to prevent condensation from temperature differences between inside and outside the building.

The EIFS system (Exterior Insulation and Finish System) is considered one of the best solutions for exterior walls. For roofs, polyurethane foam is recommended as it provides both water and thermal insulation simultaneously, or bitumen rolls with a thermal insulation layer.

Sulfate-Resistant Cement (SRC)

In coastal areas with salty soil and high groundwater, sulfate-resistant cement (SRC - Type V) must be used in foundations and underground structural elements. This type of cement improves concrete performance and reduces corrosion from sulfate salts in soil and groundwater.

Sulfate-resistant cement is available from several Saudi factories such as Saudi Cement, Al-Rashed Cement, Umm Al-Qura Cement, and Najran Cement. Ensure the contractor uses it in foundations if you're building in a coastal area.

Mechanical Ventilation

Natural ventilation may not be sufficient in humid environments like Jeddah and Dammam. Installing mechanical ventilation systems in suspended ceilings, bathrooms, and kitchens helps expel trapped moisture and prevent accumulation. Bathroom exhaust fans should have sufficient capacity and run long enough after use.

Dehumidifiers

In highly humid areas, you may need to use dehumidifiers to maintain a healthy humidity level inside the home (between 40-60%). These devices also help eliminate odors and prevent mold growth.

Seventh: How to Protect Yourself Before Buying Property?

If you're thinking of buying property in Jeddah or Dammam, there are important steps to take.

Before Buying

Request a comprehensive technical inspection of the property from a certified engineer, focusing on moisture and mold signs. Verify the existence of a valid latent defects insurance policy and carefully read its exclusions. Ask about the type of insulation used in roofs, walls, and foundations. Verify the type of cement used in foundations, especially if the property is in an area close to the sea or with high groundwater.

Warning Signs During Viewing

Watch for any spots on walls or ceilings even if recently painted. Smell closed rooms, as mold smell doesn't disappear easily. Inspect room corners and areas behind furniture. Check paint condition in bathrooms and kitchens. Ask neighbors about moisture problems in the building or area.

After Buying

Maintain good daily ventilation of the home. Monitor any moisture signs and act immediately when they appear. Perform periodic maintenance on insulation and plumbing. Use moisture and mold-resistant paints in bathrooms and kitchens. Consider installing a dehumidifier if the area is very humid.

Eighth: What to Do If You Discover a Moisture or Mold Problem?

Immediate Steps

Document the problem with photos and dates immediately. Improve ventilation in the affected area. Don't try to paint or cover the mold, as this hides the problem without solving it. Contact a company specializing in leak detection and moisture treatment.

If You Believe It's a Structural Defect

Request a technical report from a certified engineer identifying the problem's cause. If the report proves the cause is a structural defect, submit a claim to the insurance company within 60 days of discovering the defect. Attach all supporting reports, photos, and documents. Follow up on the claim and keep copies of all correspondence.

If the Insurance Company Rejects the Claim

Request the rejection reason in writing. Consult a lawyer specializing in insurance cases. You can file a complaint with the Insurance Authority at 8001240551 or through the SAMA Cares website.

Ninth: Important Contacts and Numbers

Insurance and Complaints Authorities

Insurance Authority (Complaints): 8001240551. Saudi Central Bank (SAMA Cares): 8001256666. Tawuniya Insurance (Insurance Pool Leader): 8001249990.

Construction and Inspection Services

Balady app for issuing latent defects insurance policy. Ejar platform for contract documentation. Saudi Standards, Metrology and Quality Organization for verifying approved building materials.

Frequently Asked Questions

Is latent defects insurance mandatory?

Yes, it has become mandatory for all residential and commercial buildings, and is a requirement for issuing building permits and occupancy certificates.

How long is latent defects insurance coverage?

Coverage extends for 10 years from the occupancy certificate issuance date.

Is mold covered by latent defects insurance?

Usually no, unless it directly results from a structural defect covered by the policy and the causal relationship can be proven.

What's the difference between waterproofing and thermal insulation?

Waterproofing prevents water leakage, while thermal insulation prevents heat transfer. In coastal cities, you need both together to prevent condensation and moisture.

What is sulfate-resistant cement?

It's a special type of cement (SRC - Type V) that resists the effect of sulfate salts found in soil and groundwater, used in foundations and underground elements in coastal areas.

How do I know if my house has a moisture problem?

Signs include: dark spots on walls, peeling paint, musty smell, condensation on windows, bulging plaster or gypsum.

Can I claim insurance on an old building?

Insurance only covers buildings that received occupancy certificates after system implementation (2020), and for 10 years from the certificate date.

Conclusion

Moisture and mold problems in coastal cities like Jeddah and Dammam are real and serious, but relying on latent defects insurance alone won't protect you. Proper understanding of what the policy covers and doesn't cover, along with investing in correct specifications from the start, is your path to protecting your health and investment.

If you're building, require dual insulation and sulfate-resistant cement. If you're buying, inspect carefully and ask about specifications. And if you face a problem, document it immediately and act quickly. Prevention is always cheaper and easier than cure.