Does Home Insurance Cover Mold?

Insurance Guides Homeowner Insurance Does Home Insurance Cover Mold?

Mold is a serious issue to have in your home. Swift mold remediation can prevent further damage to both your home and your health. But will your homeowners insurance cover mold damage? It depends.

Each insurance company handles mold remediation claims differently, with some covering damage while others don't. Read this complete guide to learn if homeowners insurance covers mold and what you should consider when choosing your insurance policy.

Key Takeaways

Mold damage is often covered by homeowners insurance policies if it is a result of a sudden and accidental water leak, like burst pipes or appliances leaks.
Some causes of mold are explicitly not covered by homeowners insurance but may be covered by other policies.
Knowing the signs of mold in your home can prevent further damage.
Take immediate steps to prevent water damage when mold is discovered to prevent larger claims.
Homeowners have options when their insurer denies their mold claim.

When Mold is Covered By Home Insurance

No one wants to find mold in their home. Mold remediation can be costly and dangerous, and it is often explicitly excluded from homeowners insurance policies.
But, there are some causes of mold that a standard homeowners policy, subject to coverage limits and deductibles, will cover. The mold causes most often covered by homeowners insurance include the following sudden and accidental water damages:

HVAC, air conditioner, or water heater malfunction
Appliance leaks (washing machines, dishwashers, refrigerators)
Burst pipes or hoses
Fire losses
Other water leaks

The key to homeowners insurance coverage for mold is the cause of the mold. It must be a sudden, accidental discharge of water, like when a pipe bursts, that is addressed immediately but still results in mold damage.

When Mold Damage is NOT Covered By Home Insurance

Unfortunately, many causes of mold aren't covered under standard homeowner insurance policies, and losses will likely be excluded from coverage.

Insurance companies usually don't cover mold claims if they could have been prevented or if they're a result of a non-covered event.

The causes of mold that are typically not covered by homeowners insurance include:

Negligence (not addressing water leaks promptly)
High humidity resulting from poor ventilation
Flood damage
Water backup, seepage, or sewage from sump pump failure
Undiscovered long-term leaks

Mold may be excluded from your standard homeowners coverage, but it might fall under an insurance rider, endorsement, or additional policy you have. For example, mold resulting from a flood likely won't be covered under your homeowner's insurance, but it may be covered by a separate flood insurance policy you hold.

Signs of Mold Damage

Spotting mold and addressing it quickly can reduce costs and prevent insurance claims, covered or not. Here are some warning signs of mold damage and steps you can take to reduce the cost of mold remediation.

Visible Damage

Mold most often appears as dark patches in areas exposed to water or excess humidity. It can also be lighter colors, like white or orange, and spotted or mottled across large areas or in small patches. Mold can have a cottony, velvety, or fuzzy texture.

Look for visible signs of mold in areas of your home where water might be present, such as your bathroom, basement, or attic. Mold can't always be seen—it can lurk behind walls or floors or be present in ducts.

Smell

Mold can also be recognized by its musty or earthy smell. The stronger the smell, the more widespread the mold growth and the harder the removal process. The smells associated with mold are often the first indicator to look for potential areas of mold.

Health Concerns

Mold is more than unattractive, smelly, and destructive to your home. It can also impact your health.

Individuals with asthma, allergies, or respiratory sensitivities may find themselves experiencing heightened symptoms if mold is present.

Wheezing, coughing, and skin irritations are some of the most common health issues associated with mold. It can also impact your mood, causing you to be sluggish and fatigued.

Mold can cause serious health problems if it goes undetected for long periods of time, especially for the immunocompromised.

Changes in Structures

Mold can hide behind surfaces for a while. Peeling, blistering, dampness, warping, or crumbling of surfaces can be signs of mold hiding beneath affected areas. Hidden mold can be particularly damaging as it has the potential for expansive growth before being discovered.

How Much Does Mold Remediation Cost and Will Insurance Cover It?

Mold remediation costs range from a few hundred dollars to tens of thousands of dollars. Costs depend on the type of mold damage, the extent of the damage, the source, and homeowners policy limits.

Type of Mold Damage	Average Cost	Will Home Insurance Cover Mold Damage?
Minor mold damage (under 10 sq. ft.)	$500 - $1,500	Likely if caused by a covered peril
Moderate mold damage (10-100 sq. ft.)	$2,000 - $6,000	May be covered if linked to sudden event
Severe mold damage (over 100 sq. ft.)	$10,000 - $30,000	Partial coverage due to mold limits in policy
Mold testing	$300 - $500	Usually not covered
Preventative mold treatment	$500 - $2,500	Not covered

Even when mold is covered under a homeowners insurance policy, the amount paid out for mold remediation is usually capped at $10,000 - $20,000, regardless of the cause of loss or extent of the damage.

Is a Mold Insurance Rider Worth It?

Some insurers offer add-on coverages, called endorsements or riders, for mold. The riders may include mold coverage that would otherwise be excluded or extend mold remediation coverage limits, depending on the insurer.

Cost for mold riders typically ranges from $50 to $150 per year, depending on the home insurance company and coverage limit.

Determining whether a mold rider is worth it to you can depend on many factors. If you live in a humid climate, have a home with a history of water or mold issues, or have an old house, you may want to consider additional mold coverage. For example, people looking for homeowners insurance in Florida should ask about mold coverage, as the humidity and risk of flooding can be high.

How to File a Mold Claim with Your Home Insurance

Filing an insurance claim for mold can feel daunting, but following a few simple steps can make it go more smoothly.

1. Take immediate steps to protect your property from further damage (e.g., turn off water access to leaks and use a dehumidifier and exhaust fans).

2. Contact your insurance company.

3. If you need to take steps to repair a leak, make sure you take photos before, during, and after the repair.

4. Meet with your insurance adjuster to determine coverage and next steps.

5. Get multiple estimates for mold remediation and other repairs needed.

6. Obtain approval from your insurance adjuster.

7. Proceed with mold removal by an approved mold remediation provider.

The time it takes to settle your home insurance mold claim can range from a few weeks to several months, depending on the severity of the claim, the insurer's claims process, and the speed of mold remediation.

What to Do if Your Mold Claim is Denied

It can be frustrating when your mold insurance claim is denied. But you do have options.

The first step is to carefully review your home insurance policy and determine whether a formal appeal of your denied claim is warranted. If so, file a formal appeal with your insurance provider, citing why you believe your claim should have been covered, and include documentation supporting your claim.

If your appeal is still denied, you can obtain legal counsel to pursue the claim further.

FAQ: Does Home Insurance Cover Mold Damage?

Is mold damage from flooding covered by homeowners insurance?

Mold damage caused by flooding may be covered, depending on the water source. If the water was due to a ruptured water line or leak, associated mold damage could be covered by your homeowners insurance.

Mold that occurs after flooding from something like a natural disaster is likely not covered by a standard homeowners insurance policy, but it might be covered under flood insurance, like the policies provided by the National Flood Insurance Program.

Can I add mold coverage to my existing homeowners insurance policy?

Riders or endorsements can often be added to a homeowners policy to extend or broaden mold coverage on an existing policy. Contact your insurance agent to determine if mold is covered under your homeowners insurance, what exclusions apply, and if extended coverage is available. Make sure to also inquire about mold coverage when shopping for home insurance quotes.

What should I do if I find mold in my home?

If you find mold in your home, first look for a water or humidity source that's causing the mold and make any temporary repairs needed to prevent further damage.

Next, dry out affected areas and assess the extent of the damage. Small areas could be fixed with a DIY cleanup with bleach or other commercial cleaners. If you find more extensive damage or you suspect something like black mold, consult a professional and determine if an insurance claim is warranted.

Remember, mold and cleaners can be hazardous to your health. Practice safety measures when dealing with mold. Respirators, gloves, and goggles can prevent dangerous reactions to mold growth and protection while handling mold-cleaning products.

How long does it take for mold to grow after water damage?

Mold can begin growing as soon as 24 hours after exposure to water. Mold growth can start well before a homeowner can see or smell the signs of mold exposure. Addressing water or humidity issues immediately and thoroughly drying exposed areas can prevent further mold growth.

Article written by Shawnette Good.

Shawnette is an insurance professional with 30 years of industry experience helping consumers understand complex insurance topics. Outside of writing, Shawnette enjoys long nature walks and volunteering in her community.