The Dark Side of Damp: Understanding Black Mold Insurance Claims

Stachybotrys chartarum, better known as black mold, is a greenish-black fungus that thrives in moist environments [1]. Not only is it unsightly, but it can cause walls, furniture, and other items to lose their structural integrity. In some people, black mold also triggers an allergic reaction, resulting in congestion, sneezing, and watery eyes [2].

Generally, homeowners insurance doesn’t cover black mold unless it grows due to a covered peril. For example, if black mold grows after a pipe burst, your insurance company may cover the cost of remediation. Protect your interests by learning more about black mold and homeowners insurance coverage.

Black Mold and Homeowners Insurance

Black mold is a serious problem, but it’s not always covered by homeowners insurance. If you haven’t reviewed your policy in a while, take a few minutes to find out what’s covered and what’s excluded.

Policy Coverage of Black Mold

Your insurance company may cover black mold if it grows due to a covered peril, which is an event that’s specifically covered by your policy. For example, it’s likely your homeowners insurance covers accidental fires. If firefighters have to use a hose to extinguish flames, the water may soak your carpets and baseboards, causing mold growth. Since a fire is typically a covered peril, your insurer might pay for mold remediation.

Another example is black mold growth due to a defective water heater. If your insurance policy covers the water heater, then it may cover mold growth that occurs due to the heater’s failure. For example, if the pressure-relief valve stops working, your water heater may release many gallons of water in your basement. Water that seeps behind walls and under floors may cause mold to grow where you can’t see it.

Even if black mold grows due to a covered peril, your insurance company may not cover it unless it’s hidden behind your walls, above your ceilings, or beneath your floors. Mold feeds on cellulose and other organic materials, so allowing it to grow unchecked puts your home’s structural integrity into question [3].

Your insurer may deny mold-related claims related to the following:

• Lack of ventilation in bathrooms and other damp areas
• Poor sealing around windows and doors
• Flooding
• Sump pump failure

Standard homeowners insurance policies don’t cover flooding. If you live in a flood-prone area, you can buy a separate flood policy from the National Flood Insurance Program or a private insurer. Before you buy a flood policy, review it carefully to determine if mold is covered and under what circumstances.

NFIP policies don’t cover mold damage unless you’re unable to return to your home [4]. Private insurers are allowed to set their own policy terms, so you may have different coverage under a private flood insurance policy.

Filing a Homeowners Insurance Claim for Black Mold

If you discover black mold in your home, contact your insurer immediately. Every policy has a time limit for filing claims, and if you wait too long, the company may deny your claim even if it would’ve been covered if you filed on time.

The claims process may vary a little from one insurance company to the next, but you typically need to follow these steps:

1. Tell your insurer about the mold.
2. Submit the necessary claim forms.
3. Provide documentation to support your claim. Photographs, videos, and estimates from local contractors are helpful for convincing your insurance adjuster that your claim has merit. Be sure to include proof that the mold problem is the result of a covered peril.
4. Prevent additional damage by running a dehumidifier or using fans to eliminate excess moisture [5].
5. Stay in close contact with your adjuster. If they request additional documentation, provide it as soon as possible to prevent processing delays.
6. Request estimates from reputable mold remediation companies in your area.
7. Decide whether to accept your insurer’s initial offer or negotiate for a higher amount.

Mold Prevention and Mitigation: Your Responsibilities as a Homeowner

As a homeowner, you’re responsible for keeping your home in good condition. Your insurer isn’t likely to cover mold damage associated with a lack of maintenance or necessary repairs. Therefore, it’s important to take steps to prevent mold growth or eliminate mold once it starts growing.

Next Steps

You may not be able to prevent a broken water heater or an accidental fire, but there are things you can do to prevent mold growth. If black mold begins to grow, there are also several things you can do to prevent the problem from getting worse.

Tips for Preventing Mold Growth

Black mold thrives in moist environments, so one way to prevent it from growing is to limit the amount of humidity in your home. Here are a few ways to keep moisture levels in check:

• Use a dehumidifier to remove excess moisture from your basement or crawlspace.
• Run exhaust fans in your kitchen and bathroom. These fans improve airflow, reducing the risk of mold growth [6].
• Fix leaks immediately. If necessary, hire a licensed plumber.
• Remove wet carpets and area rugs immediately after a leak occurs.
• Replace water-soaked furniture immediately.
• Don’t use a humidifier more often than needed.
• Make sure your doors and windows are sealed properly.

What to Do if You Discover Mold

If you notice mold growing in your home, quick action may prevent the problem from getting even worse. The first step is to remove any sources of excess moisture, such as waterlogged carpeting and wet furniture.

Next, focus on removing mold from surfaces. If it’s growing on a bathtub, counter, or other hard surface, use a mixture of 1 cup of bleach and 1 gallon of water to make your own cleaning solution. Be sure to ventilate the area and wear personal protective equipment while you’re working with bleach and other harsh chemicals.

Communicating With Your Insurer About Mold

If you have to contact your insurance company, call the number listed in your policy documents. Once your insurer assigns an adjuster, they may ask you to communicate with them via email or text message. No matter which method you use, it’s important to follow up regularly and respond to any queries as soon as possible. If you don’t answer your adjuster in a timely manner, you’ll have to wait longer for them to process your claim.

When communicating via telephone, take notes to help you remember what you discussed. At a minimum, write down the date and time, along with a summary of your conversation. If you have trouble writing everything down, ask your adjuster for permission to record each call.

Be Prepared for Mold Damage

Now that you understand the relationship between black mold and homeowners insurance, you’re prepared to file a claim and communicate with your insurance adjuster. To reduce the risk of mold damage, be proactive. Using exhaust fans, running a dehumidifier, and addressing excess moisture right away are all good ways to prevent black mold from growing.

If a covered peril occurs, contact your insurance company right away. Improve your chances of claim approval by providing extensive documentation and responding to messages from your assigned adjuster as quickly as you can.

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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.