Making an Insurance Claim for Mold Damage

Does homeowners insurance cover mold? It depends on the circumstances. Find out more about how insurance companies handle claims related to mold damage.

Key Facts

Homeowners insurance generally covers mold damage arising from covered perils.
Your policy may cover mold growth due to leaky pipes and hoses, appliance malfunctions, or the use of hose water to put out a fire.
Standard homeowners insurance doesn’t cover mold damage caused by flooding.
One of the best ways to prevent mold damage is to eliminate excess moisture from your home.

Does Homeowners Insurance Cover Mold Damage?

	Often Covered	Sometimes Covered	Often Not Covered
Mold caused by leaky pipes/drain hoses	X
Mold caused by the use of hose water to extinguish a covered fire	X
Mold growth due to a toilet overflow	X
Mold growth caused by an appliance malfunction (e.g. washer, dishwasher)	X
Water backups		X
Hidden water damage		X
Mold growth due to storm-related roof damage	X
Flooding			X

What Mold Issues Are Typically Covered Under Homeowners Insurance?

In the insurance industry, a peril is an unexpected event that damages your home or some of its contents. A covered peril is an event that’s covered by your specific insurance policy.

Homeowners insurance generally covers mold damage if it’s related to a covered peril, such as a leaky pipe or an overflowing toilet. Your policy may also cover mold growth that occurs due to the use of a hose to put out a fire.

It’s also possible to buy additional coverage for some issues, such as water backups and hidden water damage. This type of coverage is known as an endorsement or a rider. If your standard policy doesn’t provide as much protection as you’d like, consider purchasing an endorsement for extra peace of mind.

What Mold-Related Problems Are Typically Not Covered Under Homeowners Insurance?

Standard homeowners insurance doesn’t cover mold or other types of damage caused by floods. If you live in an area with frequent flooding and have a government-backed mortgage, you must buy a separate flood insurance policy as a condition of your loan [1]. This type of policy covers losses that are a direct result of flooding.

If you have flood insurance through the National Flood Insurance Program, your policy won’t cover mold damage unless it’s preventing you from returning to your home [2]. Private insurers may cover mold damage due to flooding, but check the terms of your policy to be sure. Even if your insurance company covers flood-related mold, your policy may have low coverage limits for this type of damage.

Finally, homeowners insurance generally doesn’t cover mold or other types of damage caused by a lack of maintenance or failure to perform necessary repairs. For example, if you don’t fix or replace a leaky water heater in a reasonable amount of time, your insurer may deny your mold-related claim.

Should You File an Insurance Claim for Mold Damage?

If a covered peril causes mold growth, the first thing you need to do is determine the extent of the damage. Mold feeds off of the organic material in wood, drywall, and other building materials, so it may cause extensive damage if you don’t notice it right away. If a reputable contractor tells you it’s going to cost several thousand dollars to fix the problem, you may want to file a claim with your insurance company.

Every time you file a claim, the details become part of your insurance record. If you have several claims on file, your insurer may increase your rates or even refuse to continue covering your home and its contents. Therefore, if a contractor gives you a low estimate, you may want to pay for the repairs yourself instead of filing an insurance claim.

How to File a Claim for Mold Damage

When you file a claim, your insurance company assigns an adjuster to investigate. Here are the steps involved in the claims process:

Let your insurance company know about the damage.
Gather supporting documentation. To show that the mold damage is linked to a covered peril, it’s helpful to provide photos, videos, repair estimates, and receipts from contractors. For example, if the mold grew due to an overflowing toilet, you may want to include a copy of your plumber’s invoice to show you had the problem fixed immediately.
Keep in touch with your adjuster. You don’t have to call them every day, but you should follow up occasionally. If your adjuster contacts you to request more information, respond quickly. They may want you to provide additional documentation or answer questions related to your claim.
Find a qualified contractor to provide mold remediation services. Ask for estimates from several professionals to ensure you don’t overpay for the work. Before you hire a contractor, be sure to verify their license and other professional credentials.
Review your insurance company’s offer. If you’re satisfied with the amount, accept it and wait for your payment to arrive. Otherwise, you may want to negotiate further.

Preventing Mold: Tips and Strategies

If you’re concerned about insurance coverage for mold damage, the best thing to do is stop mold before it starts. You may not be able to prevent mold growth 100% of the time, but you can take steps to mitigate the damage it causes.

In some people, mold triggers serious immune reactions, so taking these steps may also help you avoid itching, sneezing, watery eyes, and other symptoms. If mold develops in spite of your best efforts, leave the remediation efforts to a professional. Exposure to mold during the cleanup process may increase your risk of developing mold-related health issues.

Eliminate Excess Moisture

Mold flourishes in most environments, so one of the best ways to prevent growth is to eliminate excess moisture from your home. If you love baths, consider reducing the water temperature or spending a little less time in the tub. Be sure to run the bathroom exhaust fan every time you bathe or shower. Exhaust fans are also helpful for venting moisture from your kitchen.

If your home is damper than you’d like, use a dehumidifier as needed. The Environmental Protection Agency recommends maintaining a humidity level below 60% for your health and comfort [3]. You can also eliminate excess moisture in the following ways:

Use the auto-fan setting on your air conditioner instead of running the fan constantly [4].
Run your dishwasher and washing machine only when they’re full.
Add insulation to cool surfaces to prevent condensation.
Seal air leaks around your doors, windows, and plumbing fixtures to decrease the flow of moisture.
Make sure your air conditioner is the right size for your home. If it’s undersized, it won’t be able to remove the right amount of moisture from the area.

Repair Leaks Quickly

If you have a leaky faucet, toilet, pipe, water heater, or roof, address it immediately [5]. Holding off on repairs allows more moisture into your home, increasing the risk of mold growth. Additionally, your insurance company may deny your claim if you know there’s a problem and don’t do anything to address it.

Keep Your Gutters Clean

Leaves, sticks, and other types of debris clog gutters and downspouts, preventing water from draining properly. Over time, water buildup may cause asphalt shingles to break down, making them less effective at protecting your roofing underlayment. To prevent this from happening, clean your gutters at least twice per year [6].

Address Drainage Issues

Poor drainage causes water to pool around your property. If some of that water gets into your basement, you may end up with a mold problem on your hands. To prevent this type of damage, address drainage issues immediately. You may need to install a drain or hire someone to grade your soil [7].

Understand Your Insurance for Better Peace of Mind

Although insurance companies generally cover mold related to covered perils, every policy is a little different. Give yourself extra peace of mind by reviewing your policy regularly and ensuring you understand your coverage and its limitations.

Reviewed by Kristopher Kane

Kristopher Kane is a career freelance writer with over 15 years of experience and a broad portfolio encompassing various topics within the insurance industry. He has written for both B2B communication and consumer-level customer engagement.