Does Homeowners Insurance Cover Mold

WRITTEN BY: Mark Romero


The answer to this question is – it depends. Generally speaking, mold damage is covered if caused by a covered peril. A mold claim will be denied if the mold is caused by flooding, negligence, or peril that is not covered. There are some exceptions, and we’ll touch on those later.

Let’s start with some basics. Mold starts as a spore. There are millions of these microscopic particles in the air, on grass, leaves, and on just about everything outside you touch or rub against.

These spores find their way into your home through open windows, shoes, vents in the eaves, and even on Fido’s paws. By themselves, spores are just dust. But if they find a warm place and have access to food (just about anything) and moisture, they can colonize into the mold.

The takeaway is every home has the potential to form mold. Fortunately, normal, regular housekeeping is usually enough to prevent serious mold from occurring.

Insurance companies expect their policyholders to maintain their houses proactively. Consequently, when mold damage occurs, an adjuster’s first question is whether the formation could have been prevented. 

Is mold covered by my homeowners insurance policy?

Mold claims can get tricky. Identical mold damage caused by covered perils may or may not be honored.  

During a rough winter, an ice dam forms in your gutter, backing up water under the shingles of your 11-year-old roof—the water leaks into the attic, saturating the insulation and causing mold. The covered peril is the weight of ice, snow, or sleet and the company pays for the damage and clean-up.

That spring, a strong storm rolls through and blows off shingles on your neighbor’s 40-year-old roof. Rain leaks into the attic, saturating the insulation and causing mold.

The covered peril is wind damage, but the insurance company denies the claim. The roof is way past its useful life, and the homeowner must replace it.

You come home and discover your washer hose has burst, spilling gallons of water. The spill has leaked under the baseboard and soaked the lower portion of your wallboard, creating mold.

The covered peril is accidental discharge or overflow of water or steam from plumbing, heating, air conditioners, sprinkler systems, or household appliances.

The insurance company pays for the fix. Your neighbor experiences the same thing, except his hose was old and should have been replaced. The insurance company declines the claim.

As you can see from the examples, just having insurance does not relieve you of the responsibility of maintaining your home.

How to File a Mold Claim

You should contact your insurance agent or company as soon as you know of mold damage in your home. That said, your first action should be to stabilize the damage.

Because water is associated with mold, if you have a flood in your house (caused by a covered peril), your first action is to find the source of the leak and turn off the water.

That may mean cutting off the water to your home. Take photos of the damage and then begin the task of cleaning up. Mop or wet vac the water, remove carpeting and furniture that has been damaged (place it in the garage for inspection by the adjuster), and open windows to improve ventilation and drying.

If the damage is extensive, you may need a water mitigation team to tackle the task. You can call your agent or company and get recommendations for companies that already have a relationship with your carrier.

While on that phone call, ask what limits you have for additional living expenses (ALE) if you need to relocate your family temporarily. 

Detailed documentation is the best practice to ensure your mold claim is both honored and paid at a fair rate. Photos, receipts, and a detailed timeline will help you successfully get through the experience.

How to Get Homeowners Insurance Coverage for Mold

Mold damage is a serious issue; if not taken care of quickly, it can lead to extensive and expensive repairs. That’s why homeowners must understand whether their insurance policy covers mold damage. The good news is that most policies provide coverage for this type of damage, but there are some exceptions. If you would like to compare policies for a better rate, complete our online rate form to get started.