Homeowners insurance generally doesn’t cover mold issues unless they result from a covered peril on your policy, such as water damage from a burst pipe or overflowing toilet. However, exact coverage depends on the terms and conditions of your plan.
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When does homeowners insurance cover mold?
It depends on your policy, but a standard homeowners insurance plan will usually only cover mold issues if they’re related to covered perils. In many cases, these are sudden, unexpected, or accidental events, such as:
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Burst pipes
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Burst water heaters
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Overflowing toilets
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Home fires that are put out with water
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Malfunctions of air conditioning units and other home systems
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Weight of snow and ice on your roof
Read more: What does homeowners insurance cover?
When does homeowners insurance not cover mold?
Your homeowners insurance won’t cover mold damage or removal if it’s not listed as covered in your policy, or if it’s not related to a listed covered peril, such as sudden or unexpected water damage.
For example, your policy likely wouldn’t cover mold damage from the following:
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Faucets with gradual leaks
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Rooms with poor ventilation, where water could accumulate, such as laundry rooms or bathrooms
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Rooms with poorly sealed windows where water moisture could accumulate
Read more: What does homeowners insurance not cover?
Signs of mold in your home
Sight
Seeing mold is one of the easiest ways to identify mold growth in your home. It’s often fuzzy or discolored, though it could also be slimy.
Even if you don’t physically see mold, you may be able to pinpoint its location by following any signs of water damage, such as wet walls, ceilings, or floors.
Smell
You may also be able to smell mold. If there’s a musty odor in a certain area or room of your home, you may have a mold problem.
Health problems
Mold is more likely in areas of the home that have sustained water damage at some point. In some cases, mold can be hidden from view, making it harder to spot — but not preventing its harmful effects. If you or anyone else is experiencing health issues and you’re unsure why, it could be related to mold.
Tips to prevent mold
Mold can grow on just about any surface of your home if there’s sufficient moisture, so the best way to prevent mold from growing is to identify and avoid any water issues.
Consider this checklist as you seek to prevent mold in your home:
1. Check for leaks and inspect damp areas of the home
Common areas for leaks include roofs, attics, bathrooms, basements, crawl spaces, laundry rooms, and kitchens. If you see any water or moisture, identify its source and consider ways to remove it and prevent it from recurring.
2. Look for ventilation opportunities
Proper ventilation can go a long way in reducing moisture in an enclosed space, such as a bathroom or laundry room.
3. Keep indoor humidity low
If your home’s humidity is consistently high, you may consider installing or using a dehumidifier.
4. Use proper landscaping techniques
The area around your home should slope away from the house so water doesn’t pool near the foundation, which could cause moisture issues.
5. Quickly clean up spills
Be sure to always clean up spills as soon as possible, so mold doesn’t have a chance to grow.
6. Consider ways to prevent condensation
Condensation can form on windows, walls, pipes, and other surfaces, providing a water source for mold growth. If you see condensation, quickly clean it up and consider how to prevent it in the future, such as lowering your home’s humidity or increasing the air temperature.
How much does mold remediation cost?
The national average cost of mold remediation ranges from $592 to $2,378, although most people pay around $1,188, according to Thumbtack data. However, prices can vary by location and other factors.
For instance, Angi estimates that the average mold remediation cost in the New York tristate area is $2,546, ranging from $500 on the low end to $7,000 on the high end.
This shows that location is one variable that helps determine the cost, but these other factors can also affect the final price:
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Mold size: You can clean small amounts of mold growth on your own relatively cheaply, while large, full-room or multi-room projects can cost thousands of dollars.
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Mold location: Certain rooms or spaces may be more expensive to treat than others. For example, extensive mold damage inside your drywall could cost more than mold issues in your crawl space.
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Total damage: Mold can also damage items within your home, beyond your home’s structure. The more damage there is, the more you’ll likely have to pay for mold remediation.
Read more: How to shop for homeowners insurance
Coverage limits
Be aware that even if your homeowners insurance includes mold coverage under certain circumstances, there may be a limit on how much your provider will pay.
When reviewing our Progressive homeowners insurance policy, we found that the limit was $5,000 for fungi, including mold, wet or dry rot, or bacteria. Also, this coverage applied only if the mold (or similar) damage resulted from a covered peril.
In some cases, you may be able to find a higher coverage amount. For instance, some Allstate policies may provide up to $10,000 for remediation of mold, fungus, or wet or dry rot resulting from a covered water loss.
You may also be able to add a mold endorsement to your policy, though this depends on the insurance provider.
How to expand your mold coverage
Apart from finding a provider that offers mold-specific coverage, consider these other options to protect yourself against potential mold remediation costs:
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Endorsements and riders: Depending on your provider and policy, you may be able to add an endorsement or rider to increase your mold coverage.
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Water damage coverage: Adding water damage coverage could indirectly increase your mold coverage, though it might not matter if your insurer has mold coverage limits.
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Service line coverage: Adding or increasing service line coverage can help prevent water damage to your home, potentially reducing the risk of mold.
How to file a mold insurance claim step-by-step
Filing an insurance claim for mold damage will be similar to filing a homeowners insurance claim. The exact instructions may vary by provider, but will generally follow these steps:
1. Prevent further damage
As long as it’s safe to do so, do your best to ensure the damage doesn’t continue happening. Shutting off the water main to prevent continued leaking could be one solution.
2. Document the damage
When possible, take plenty of photos and videos of the damage. This should be done before cleaning up or trying to remedy the situation.
3. Contact your insurance provider
Contact your insurance provider immediately to begin collecting the required information for your claim. You will likely need to provide your policy information and any other relevant details.
4. Collect and submit the required information
Your insurer will tell you exactly what you need to provide, which could include additional photos, descriptions, and/or other documentation.
5. Stay in contact with your claims adjuster
A claims adjuster will likely come to your property to assess repair costs. If needed, they will contact you for more information. Be prompt and detailed in your responses to ensure a speedy resolution.
6. Review your estimate and schedule repairs
As long as everything proceeds smoothly with your claim, you will receive a payment estimate from your insurance provider. If everything looks accurate, you can accept it and then use the money to pay for repairs. If not, be sure to voice your concerns to your insurer.
Homeowners insurance and mold FAQs
What kind of mold is covered by homeowners insurance?
Homeowners insurance policies don’t often cover mold directly, but may include coverage for mold if there’s sudden, unexpected water damage. In these cases, your policy may cover mold, bacteria, and wet or dry rot.
How do I get insurance for mold?
Most standard homeowners insurance policies don’t directly cover mold, but they may cover it as a result of sudden and unexpected water damage. Carefully review a policy’s terms and conditions to see if mold is included and to verify if there’s a coverage limit on mold remediation.
Is black mold covered by homeowners insurance?
It is typically only covered if it results from a covered water damage event, such as a burst pipe or a damaged roof.
Should I tell my insurance company about mold?
You should tell your insurance company about mold if you plan to file a claim related to it, including if covered water damage led to mold growth.
Are mold tests covered by insurance?
They may be covered if mold remediation tests are included as a result of covered water damage.
