Does Home Insurance Cover Mold? (It's Complicated)
The "M-word" strikes fear into homeowners and insurance agents alike. Mold can be hazardous to your health and exorbitantly expensive to remove.
But is it covered? The answer lies in how the mold got there in the first place.
The "Resulting Damage" Rule
Home insurance is designed to cover "sudden and accidental" events. It is not a warranty against poor maintenance.
Likely Covered
Mold that results from a specific, covered peril.
- Mold after a pipe bursts
- Mold after a firefighter puts out a fire with water
- Mold after an ice dam causes a roof leak
Not Covered
Mold caused by long-term neglect or environmental factors.
- High humidity in a bathroom (lack of ventilation)
- Slow leak under sink that you ignored for months
- Flood water resulting in mold (unless you have Flood Insurance)
The Limits of Coverage
Even if your mold is covered, check your "Sub-Limits."
Because mold removal (remediation) is so expensive, many insurers cap their payout at **$5,000 or $10,000** total for fungus, wet rot, dry rot, and bacteria. This barely covers the initial setup of containment barriers and HEPA filters.
Recommendation: Ask your agent if you can increase this limit.
Preventing a Denial
If you file a claim, the adjuster will inspect for "prior damage." If they see layers of old mold mixed with new mold, they might deny the whole claim.
Action Step: Inspect your crawlspace, attic, and under-sink cabinets twice a year. Fix small drips immediately. Install exhaust fans in bathrooms.
Conclusion
Mold is a symptom, not just a disease. Fix the moisture problem first, or the mold will return. And check those policy limits before you're standing in a fuzzy green living room.
Frequently Asked Questions
Can I clean mold myself? expand_more
HomeInsuranceQuotes360 Team
Home Safety