Homeowners insurance generally does not cover mold problems unless they are the result of a peril covered in your policy, such as water damage from a burst pipe or an 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 generally only cover mold problems if they are 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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House fires 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 home insurance cover?
When does home insurance not cover mold?
Your homeowners insurance will not cover mold damage or removal if it is not listed as covered on your policy, or if it is not related to a listed covered peril, such as sudden or unexpected water damage.
For example, your policy likely will not cover mold damage caused by 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 doesn’t home insurance cover?
Signs of mold in your home
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Seeing mold is one of the easiest ways to identify mold growth in your home. It is often blurry or discolored, although it can also be slimy.
Even if you don’t physically see mold, you may be able to identify 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 is a musty smell in a certain area or room of your home, you may have a mold problem.
health problems
Mold is more likely to occur in areas of the home that have suffered water damage at some point. In some cases, mold can be hidden from view, making it difficult to detect but not preventing its harmful effects. If you or someone else is having health problems and you’re not sure why, it could be related to mold.
Tips to prevent mold
Mold can grow on almost any surface in your home if there is enough moisture, so the best way to prevent mold from growing is to identify and prevent any water problems.
Consider this checklist when looking to prevent mold in your home:
1. Check for leaks and inspect wet areas of the home.
Common leaky areas include roofs, attics, bathrooms, basements, crawl spaces, laundry rooms, and kitchens. If you see water or moisture, identify its source and consider ways to eliminate it and prevent it from happening again.
2. Look for ventilation opportunities
Proper ventilation can go a long way toward reducing humidity in an enclosed space, such as a bathroom or laundry room.
3. Keep indoor humidity low
If the humidity in your home is consistently high, you may consider installing or using a dehumidifier.
4. Use proper landscaping techniques
The area around your house should slope away from the house so that water doesn’t pool near the foundation, which could cause moisture problems.
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, clean it quickly and consider how to prevent it in the future, such as reducing the humidity in your home or increasing the air temperature.
How much does mold removal cost?
The national average cost of mold remediation ranges from $592 to $2,378, although most people pay around $1,188, according to data from Thumbtack. However, prices may vary depending on location and other factors.
For example, Angi estimates that the average cost of mold remediation in the New York tri-state area is $2,546, ranging from $500 on the low end to $7,000 on the high end.
This shows that location is a variable that helps determine cost, but these other factors can also affect the final price:
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Mold size: You can clean up small amounts of mold growth on your own relatively inexpensively, 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 within your drywall could cost more than mold problems in your crawl space.
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Total damage: Mold can also damage elements within your home, beyond the structure of your home. The more damage there is, the more you will likely have to pay for mold removal.
Read more: How to buy homeowners insurance
Coverage limits
Keep in mind that even if your home insurance includes mold coverage in certain circumstances, there may be a limit on the amount your provider will pay.
When reviewing our Progressive homeowners insurance policy, we discovered that the limit was $5,000 for mold, including mold, dry or wet rot, or bacteria. Additionally, this coverage applied only if the mold (or similar) damage was the result of a covered peril.
In some cases, you may be able to find a higher coverage amount. For example, some Allstate policies can provide up to $10,000 for the removal of mold, mildew, or wet or dry rot resulting from a covered water loss.
You may also be able to add a mold endorsement to your policy, although this depends on the insurance provider.
How to expand mold coverage
In addition to finding a provider that offers mold-specific coverage, consider these other options to protect yourself against potential mold remediation costs:
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Guarantees and additional clauses: 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, although it may 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 home insurance claim. Exact instructions may vary by provider, but will generally follow these steps:
1. Prevent further damage
Whenever it is safe to do so, do everything you can to ensure that the damage does not continue to occur. Turning off the main water line to prevent continued leaks could be a solution.
2. Document the damage
When possible, take plenty of photos and videos of the damage. This should be done before cleaning or attempting to remedy the situation.
3. Contact your insurance provider
Contact your insurance provider immediately to begin collecting the information required 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 may include additional photographs, descriptions and/or other documentation.
5. Stay in touch with your claims adjuster
A claims adjuster will likely visit your property to assess repair costs. If necessary, they will contact you for more information. Please be prompt and detailed in your responses to ensure a quick resolution.
6. Review your budget and schedule repairs
As long as everything goes smoothly with your claim, you will receive a payment estimate from your insurance provider. If everything looks good, you can accept it and then use the money to pay for the repairs. Otherwise, be sure to express your concerns to your insurer.
Home Insurance and Mold FAQs
What type of mold does home insurance cover?
Homeowners insurance policies typically do not cover mold directly, but may include mold coverage if sudden, unexpected water damage occurs. In these cases, your policy may cover mold, bacteria, and wet or dry rot.
How do I get mold insurance?
Most standard homeowners insurance policies do not cover mold directly, but may cover it as a result of sudden, unexpected water damage. Carefully review the terms and conditions of a policy to see if mold is included and to check if there is a coverage limit for mold removal.
Is black mold covered by home insurance?
It is generally only covered if it is the result of a covered water damage event, such as a burst pipe or damaged roof.
Should I tell my insurance company about the mold?
You should tell your insurance company about mold if you plan to file a claim related to it, even if covered water damage caused mold growth.
Is mold testing covered by insurance?
They may be covered if mold remediation testing is included as a result of covered water damage.