A Guide to Home Insurance Coverage for Mold

When dampness lingers in your home, mold can grow. While some people don’t experience negative health problems from their spore housemates, mold exposure can be dangerous to some people, including children.[1] Getting rid of mold is critical, but your home insurance policy may not always help. 

Mold is typically covered if it stems from a sudden, unavoidable event (like a burst pipe).[2] However, a standard policy may not cover spores that come from storms, slow leaks, or neglect. 

Mold Growth & Homeowners Insurance 

What’s the relationship between mold growth and homeowners insurance? It’s complicated. While mold almost always stems from humidity and excess water, insurance companies view the moisture sources very differently. This chart can help you understand the differences: 

Mold Cause	Is It Typically Covered?	Are Special Plans Available?
Burst pipe	Yes
Toilet overflow	Yes
Broken washer hose	Yes
Storm flooding	No	Yes
Sewer backup	No	Yes
Groundwater rising	No	No
Water from a firefighter putting out a fire	Yes

When Is It Covered? 

A standard homeowner insurance plan covers water damage (including mold) from issues that are sudden and accidental.[3] When a pipe breaks, your toilet overflows, or your laundry room leaks into lower floors, the mold part of the cleanup could be covered by your policy. Mold will typically only be covered if the event that caused it (a burst pipe, etc.) is a covered event, as defined by your policy.

To use your homeowners insurance policy, you must report water damage as soon as you see it. You must clean up and try to prevent mold too. 

You can purchase plans that protect you from storms and sewer backups. These additional plans can offer crucial protection when water seeps into your home. Lisa Koosis, a former claims specialist, says, “Some insurance companies offer mold insurance riders that provide coverage beyond your standard homeowners policy. These add-ons can be particularly helpful if you have an older home that’s prone to leaks or live in a humid area.”

When Is It Not Covered?

Some types of excess moisture can cause intense mold problems that a standard policy won’t cover. Non-covered issues include:

• Storms. Hurricanes and other weather patterns can cause flooding and mold that a standard plan won’t cover. A homeowner in Houston is dealing with this issue, as a storm caused an intense roof leak. Her insurance company says this isn’t a covered event.[4] 
• Slow leaks. If water is entering your home and you don’t notice it, the mold that grows is your responsibility. A woman in Virginia is dealing with this problem, as her insurance company says a slow drip caused all of her intense mold issues.[5] 
• Deferred responsibilities. If your home is within an HOA or condo building, your home insurance company may say the leak isn’t part of your policy. A homeowner in Florida is dealing with this issue while mold is taking over her home. The HOA and her insurance company are arguing about who should pay.[6] 
• Missed issues. Mold doesn’t grow immediately, but water-based insurance claims can. When the adjusters have left, you may notice mold for the first time. A homeowner in Detroit is dealing with this problem. She found mold in rooms on the opposite side of the house from the flood source months later.[7] 

Do Special Types of Insurance Help?

Because water enters homes so frequently, insurance companies have responded by creating products to help homeowners protect their investments. But understanding your policy and how much protection you purchased is critical. 

A homeowner dealing with a close to $30,000 bill for mold after Hurricane Ian has the right kind of insurance.[8] But this homeowner only has $10,000 of coverage. Finding the rest of the money to fix up the home could be challenging. 

Claims Process for Mold Damage

If your policy covers the mold you see inside your home, filing a claim can help you fix the damage and move on. 

Here’s what to do to file a water-based claim with your homeowner’s insurance company:[3]

1. Notify the insurance agent as soon as possible. 
2. Take photos and videos of all the damage you see. Even if mold isn’t growing yet, it might if the water persists. 
3. Make a list of everything you know is damaged right now. 
4. If the insurance company agrees, make temporary repairs to keep more water from coming in. 

A claims process can take time. Working closely with your adjuster is important. Answer all questions as completely as you can. 

Know that some homeowners who have filed claims for mold later face challenges getting their policies renewed.[9] Ensure that the water source is completely fixed. If the insurance company fights you, this proof could be critical.

How Is Mold Growth Fixed by Homeowners Claims? 

If your mold growth is covered, your home will move through a process called remediation to get things back to normal.

During remediation, a contractor digs into the water source and fixes it. All moldy or damaged products are cleaned, if possible. If they can’t be cleaned, they’re removed and replaced. All affected areas are treated, so the spores don’t come back. 

A remediation contractor should provide you with a written work analysis that includes the following elements:

• The rooms that will be worked on 
• How each area will be cleaned
• What will be removed 
• What will be cleaned
• How the contractor will determine when the job is done 

In states like Texas, the contractor must give you a remediation certificate within 10 days of finishing the work.[9] This document proves that you’ve addressed the problem completely. Keep it safe, as you’ll need it when you apply for insurance again. 

Can You Prevent Mold Problems? 

Walking through your home and looking for leaks should be a routine part of caring for your home. Fix even tiny leaks when you spot them, so the issue won’t turn into intense mold problems later. 

If you have experienced water intrusion, take these steps to keep mold from growing:[10]

• Fix the leak immediately.
• Use dehumidifiers to remove excess moisture from the air.
• Throw out anything that can’t be completely dried. 
• Wipe down walls with disinfectant. 
• Use mold-resistant paint when the walls are dry. 

Sometimes, mold grows no matter how much you try to prevent it. If your moldy area is larger than about 10 square feet, experts say it’s best to hire someone to help you.[10] If it’s very small, you can generally manage the issue on your own. 

Deal With Mold Growth & Check Your Homeowners Insurance Policy

Prevention is a smart mold strategy. Stay alert and look for drip sources. Fix them when you can, but have an expert review your work if you are uncertain if the issue persists. Hire a contractor who specializes in mold removal and/or remediation for larger jobs.

Prevention also involves checking your coverage carefully. Know what your plan covers and what it does not. Look into buying an additional policy if you know you have a high risk of water intrusion and mold. If you’re not sure that you have enough coverage, ask your insurance agent to help you make a smart decision.