Mold is common in many homes. According to the Centers for Disease Control and Prevention (CDC), mold can enter homes through air conditioning systems, windows and doors. Once mold enters your home, it can grow on surfaces such as furniture, carpets, and even paint. If your home is damp, you’re more likely to see or smell mold.
If you find mold growing in your home, you should remove it immediately. But depending on the extent of the mold, it can be expensive to remove. If you’re wondering if homeowners insurance covers mold, the short answer is yes. However, home insurance policies only cover the cost of mold remediation in certain situations.
In this guide, we’ll help you understand when home insurance does and doesn’t cover mold and how to file a mold remediation claim.
When Does Homeowners Insurance Cover Mold?
After you discover mold in your house, one of the first questions you may ask yourself is, “Does your homeowners insurance cover mold?” Most home insurance policies cover mold. However, mold removal is only covered when it is caused by a covered peril.
Mold is usually caused by water damage, and most home insurance policies provide limited coverage for water damage. For water damage and the resulting mold growth to be covered, the incident must be sudden and accidental.
For example, if there was a fire in your house and it was put out, mold can grow in the damp environment. Or you may find mold growing where a burst pipe has caused water damage. In these scenarios, your homeowners insurance policy will most likely pay to remove the mold from your home.
Because each home insurance policy covers different risks, it’s important to know what losses you’re covered against. Some home insurance policies only cover your home and personal belongings against specified perils, which are specific losses specified in your insurance contract.
Other homeowner’s insurance policies cover your home and personal belongings on an uncovered perils basis, meaning you’re covered against any loss not specifically excluded in your policy wording.
When does homeowners insurance not cover mold?
When you find mold growing in your house, you shouldn’t expect your homeowners insurance to cover it. Home insurance provides limited coverage for mold, and mold removal is not covered unless it is caused by a covered peril.
If you find mold growing near water damage that occurs over time, such as a slowly leaking pipe or a window that isn’t properly sealed, your policy won’t cover mold removal. These incidents are not sudden or random. This would be considered homeowner neglect, which is never covered by home insurance.
Homeowners insurance also won’t cover mold that results from a flood. Flood damage is not a covered peril under most home insurance policies. So, for example, if a hurricane causes flooding in your basement and mold starts to grow shortly thereafter, your home insurance policy will not provide any coverage for flood cleanup or mold remediation.
If you find mold growing in your home, it’s important to take action immediately. You can contact your home insurance company to see if the source of the mold will be covered. If not, you should contact a mold removal company to assess the damage and have it professionally removed.
Does flood insurance cover mold?
You may need to get flood insurance if you live in an area prone to flooding or severe storms. Flood insurance, usually purchased through the National Flood Insurance Program (NFIP), covers your home and personal property against flood damage. However, NFIP flood insurance does not cover mold removal.
If you purchase private flood insurance through an independent insurance company, the policy may cover mold removal. You will need to contact several insurers that offer private flood insurance to see if mold is a covered risk.
How to find mold coverage
Finding mold insurance coverage can be difficult. Mold removal can be expensive and is often caused by neglect or lack of maintenance on the part of homeowners. Because of this, most standard home insurance companies provide limited coverage for mold remediation.
However, many home insurance companies sell endorsements or optional policies that may provide coverage for mold. For example, some insurance providers sell water backup coverage that pays for damage caused by clogged sewer lines, sump pump failure, and clogged drains.
If you have a water backup endorsement and need to file a water damage claim, any mold found near the property should be covered by your policy. Note that most approvals have a coverage limit, so it may not cover the full cost of repairs, depending on the extent of the damage and mold growth.
How to file a mold insurance claim
If you find mold in your home after a covered water damage event, you should contact your insurance company to begin the claim process as soon as possible. Mold removal may not be covered if you wait too long to report it.
Each home insurance company follows a different procedure for reporting losses. However, here are the basic steps to follow to file a mold insurance claim:
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Document mold damage: Take pictures of the water and mold damage. Note when you first noticed the mold growth and what caused the mold growth (extinguished fire, boiler explosion, etc.).
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Contact your insurance company: Notify your insurance company of the loss and begin the claim reporting process. You’ll need to fill out claim paperwork explaining what happened and provide any photos you have of the damage.
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Pay attention to the source of water damage: If your home is still leaking, fix what you reasonably can. For example, if a pipe bursts in your bathroom, you can turn off the water or install a dehumidifier to dry out the space. If furniture or personal belongings are soaked in water, remove them from the area, but keep them until the adjuster visits your home.
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Wait for your claim to be settled: After the claim is filed, an adjuster will review the incident. They may visit your home in person to get a better idea of the loss and how much it will cost to repair the water and mold damage. Once the claim is approved, you will receive your settlement, minus any deductibles.
Bottom row
Finding mold in your home can be alarming. But if the mold is caused by sudden or accidental water damage, your home insurance policy will likely cover the cost of mold removal. You should contact your insurance company to confirm if the loss is covered before going through the claim process.
If you are concerned about potential mold damage, you can also ask your insurance company about endorsements that will cover mold, such as water backup coverage. Endorsements will increase your home insurance premium, but you’ll pay less out of pocket if you have a claim.
To find the best home insurance policy for your needs, shop around and compare several insurance providers. Get personalized quotes for the type and amount of coverage you want (plus any endorsements) to see which insurer can offer you the lowest rate.
Editorial disclosure: All articles are prepared by the editors and contributors. The opinions expressed herein are solely those of the editorial team and have not been reviewed or endorsed by any advertiser. The information, including rates and fees, presented in this article is accurate as of the date of publication. Check the lender’s website for the most current information.
This article was originally published on SFGate.com and reviewed by Lauren Williamson, who serves as the Financial and Home Services Editor for the Hearst E-Commerce team. Email her at [email protected]