Does insurance cover mold from water damage?

The chain of cause matters

Insurers ask what caused the water and whether the mold followed quickly from it. If hail broke shingles, rain came in, and mold grew in the wet drywall, the mold traces back to a covered loss. If the attic grew mold over two summers because of poor ventilation, or a slow leak under a sink went unnoticed for months, the policy usually excludes it.

Mold limits and exclusions

Many policies exclude fungi, wet rot and bacteria in general, then add back limited coverage for mold that results from a covered water loss. That limited coverage often has its own dollar cap, which applies to removal, tear out and sometimes testing. Check your declarations page and endorsements, and ask your agent whether higher mold coverage is available.

Timing is everything

The EPA advises drying water-damaged materials within 24 to 48 hours to prevent mold growth. Insurers know this, and they can deny mold that grew because water sat for days or weeks after you knew about it. After any leak:

• Stop the water source or get the roof covered.
• Call a water mitigation company and keep their moisture readings and drying logs.
• Photograph wet materials before they are removed.
• Report the claim promptly, including any mold you discover later.

See interior water damage coverage and your duty to mitigate.