Does Homeowners Insurance Cover Mold?

Homeowners insurance policies are complex, and understanding whether mold damage is covered is not always straightforward. Coverage for mold depends heavily on its specific cause and the precise terms outlined in the policy. While a homeowner’s policy offers protection against various risks, the conditions for mold remediation and repair are quite specific, often leading to confusion.

General Homeowners Coverage for Mold

Homeowners insurance typically covers mold damage when it arises from a “covered peril,” an event specifically listed in the policy that is sudden and accidental. For instance, if a washing machine suddenly leaks, leading to water damage and subsequent mold growth, the mold might be covered because the initial water event was sudden.

Conversely, mold damage stemming from gradual issues, homeowner neglect, or a lack of routine maintenance is generally not covered. Policies protect against unexpected incidents, not problems preventable through reasonable upkeep. If a slow, persistent leak from a faucet goes unaddressed for months and mold develops, the insurance company will likely deny the claim, viewing it as a maintenance issue rather than a sudden accident.

Covered Causes of Mold Damage

Homeowners insurance policies often cover mold damage when it results from specific, sudden, and accidental water-related events. For example, mold that develops due to a burst pipe is typically covered because the pipe rupture is an unforeseen and abrupt incident. Similarly, an accidental overflow from a washing machine, dishwasher, or water heater that leads to moisture and subsequent mold growth often falls under covered perils.

Damage caused by accidental tearing apart, cracking, or burning of a plumbing, heating, or air conditioning system can also lead to covered mold. If a storm, such as a windstorm or hail, causes sudden damage to a roof or walls, allowing water to enter the home and fostering mold, this would generally be covered. Even mold resulting from water used to extinguish a fire may be covered, as the fire and its suppression are considered sudden and accidental.

Common Mold Exclusions

Many standard homeowners insurance policies contain specific exclusions for mold damage, particularly when it is not caused by a sudden, covered peril. Mold resulting from gradual leaks or seepage over an extended period is a common exclusion. If a homeowner fails to repair a known, slow leak, and mold subsequently forms, the damage is typically not covered due to neglect or inadequate maintenance.

Flooding is another significant exclusion; mold damage caused by natural floods is generally not covered by a standard homeowners policy. Separate flood insurance is typically required. Additionally, mold resulting from sewer backup or sump pump overflow is often excluded unless a specific endorsement, such as water backup and sump pump overflow coverage, has been added. Earth movement, including landslides or earthquakes, also typically excludes mold damage.

Filing a Mold Damage Claim

If mold is discovered and believed to be from a covered peril, immediate action is important. Homeowners should first try to stop the source of water, if applicable, to prevent further damage. Promptly drying the affected area is also important to inhibit mold growth, which can occur rapidly.

Thorough documentation of the damage is a crucial step before any significant cleanup or repairs begin. This includes taking detailed photos and videos of the mold, the source of the water, and any damaged property. Creating a comprehensive list of all affected items and keeping records of any expenses related to mitigation efforts are also advisable.

Notifying the insurance company as soon as possible after discovering the mold is essential. Policyholders should be prepared to provide a detailed account of the incident and the steps taken to mitigate further damage. An insurance adjuster will typically be assigned to assess the extent of the damage. Homeowners should cooperate with the adjuster, providing all requested documentation and obtaining multiple estimates for remediation and repair work to ensure a fair assessment of the costs involved.