Fungus Among Us: Navigating Insurance Claims for Mold & Mildew 

The connection between fungal infestations and homeowners insurance is murky. Some fungus issues are covered. Others are not. 

To homeowners insurance companies, a fungal infestation is the same thing as mold. Water entered your home somehow, your items got wet, and colonies bloomed in response. Some fungal triggers (like burst pipes) are covered under a standard policy. Others (like flooding) require specific policies or riders. 

Fungus Terms to Know 

What’s that colony growing on your wall? Is it a fungus, mold, or mildew? To insurance companies, all of these items are typically lumped into one big category called mold. But they can be very different things, as this comparison chart makes clear:  

	Fungus	Mold	Mildew
Types	Yeast, mushrooms, mold, and mildew	Penicillium, Aspergillus, Cladosporium, and Trichoderma	Penicillium, Aspergillus, Cladosporium, and Alternaria
Appearance	Varies dramatically	Furry	Flat
Where does it grow?	Wet places	Wet places	Wet places
Is it dangerous?	Can be	Often is	Rarely is

What Is a Fungus? 

A fungus is a single-celled or multicellular organism that typically grows in soil or on plant material.[1] If you leave an orange on your countertop for days and it becomes green and fuzzy, it has a fungal infestation. 

What Is Mold? 

Molds are species of fungi that grow via multicellular filaments.[2] Molds require damp spaces to flourish, as they can’t survive in very dry environments. They can thrive almost anywhere that’s moist, including on the surface of walls, inside appliances, and throughout insulation. Some molds look small and furry, and others look long and spiky. 

What Is Mildew?

Mildew is a type of mold that tends to stay flat.[2] Sometimes, it consists of the very same organisms scientists classify as mold. 

In a way, mildew is an early form of mold that just hasn’t had a chance to mature quite yet. Mildew can grow anywhere, but it typically prefers spaces that are almost always wet, like bathrooms. 

Fungal Infestations & Standard Homeowners Insurance 

Insurance companies consider fungal infestations a home maintenance problem.[3] In their eyes, a homeowner should have cleaned up the wetness quickly, so the spores wouldn’t grow and spread. 

If your fungal infestation stemmed from a long-standing water problem (like a slowly leaking pipe), it’s rarely covered. Similarly, if your fungus appeared after a flood, it wouldn’t be covered without a specific type of policy. 

Some home problems are covered by insurance. If the mold came after a sudden, unavoidable event (such as a broken pipe), your standard homeowners insurance could help repair the damage. 

Specific Fungal Infestation Insurance Policies 

Some insurance companies offer targeted policies and programs to assist consumers dealing with fungus. Understanding what they are and how they work can help you determine if they’re right for you and your home. 

Flood Insurance

A flood insurance policy will cover mold and mildew damage that’s directly attributed to the flood.[3] These policies can be incredibly helpful if you live in a hazard-prone area, but they can be expensive. 

One Florida family couldn’t afford their continually rising premiums for flood insurance, so they cut back. But when the next storm hit, it tore the roof off their home and allowed water in. Now, the homeowners must clean up the damage (and the mold) without the help of an insurance payout.[4]

Sewer Backup Plans 

Homeowners often think their pipes only push water out of their homes. In reality, those systems can malfunction and send water and sewage back into the house. A policy covering sewer backup could repair the damage, including any associated mold. 

Mold Riders

Some companies offer riders that are designed to help homeowners cope with fungus. They can provide limited protection. In Florida, for example, the limit is capped at $10,000.[5] Some homeowners find that isn’t enough to fix their homes after water intrusion.[6] But even a little protection might be better than none at all. 

How to File a Mold Claim

If your policy covers mold damage, you should file a claim with your insurance company as soon as possible. Any delay could result in a denial, so you should contact your agent as soon as you see water creeping into your home. 

Take these steps to file a claim:[7]

• File a formal claim with your insurance agent. 
• Take photos and videos of the damage. 
• Meet with an insurance adjuster to discuss the claim. 
• Make temporary repairs to keep more water from coming in.
• Negotiate with your insurance company on the payout. 
• Hire someone to clean up the mold. 

If you experience sudden water damage, dry all wetness as soon as you can. Keeping the air clean and dry can keep mold spores from growing, and it proves to the insurance company that you’re doing your part to mitigate the damage.[8] Use fans, dehumidifiers, and open windows to get the moisture out. 

What Should You Do When Fungus Appears? 

If the moldy area is smaller than about 10 square feet, you can manage the cleanup process on your own.[9] 

Follow these guidelines during fungal cleanups:

• Throw away items you can’t dry completely (like ceiling tiles and carpet).
• Brush mold off solid exteriors with a solution made of detergent and water. 
• Don’t use paint or caulk to cover up mold. It will peel away as the colonies grow. 

Wear masks and gloves as you clean. You’ll keep spores from entering your body and causing more damage. 

When Do You Need an Expert?

If the mold covers an area larger than 10 square feet, or it’s contaminated your HVAC systems or insulation, you may need an expert to come into your home and ensure a thorough cleanup.[9] 

Get bids from multiple contractors and examine them carefully. Your cleanup professional should be licensed, bonded, and have several references you can check. Ensure your written contract outlines when the project will start and stop and how much it will cost. 

Deal With Fungal Infestations & Homeowners Insurance

Mold prevention is critical. All homeowners should check for leaks and clean them quickly. A tiny mold colony is easier to deal with than a large infestation. 

Consider reviewing your insurance coverage for mold exclusions and limits. If you think you’re left unprotected, contact your agent and discuss your options. Adding another policy could be helpful when the water starts to rise.