Does property insurance cover mold?
Short answer. Property insurance covers mold only in limited cases, and it depends on the type of policy. Homeowners, landlord, condo and renters policies all exclude mold from long-term moisture, but most give back limited coverage when mold results from a sudden covered water loss, usually capped by a sublimit. Who pays for a roof leak also depends on who insures the roof.
By type of property policy
- Homeowners policy: covers mold that follows a covered water event, like a storm-damaged roof or a burst pipe, up to a mold sublimit. Mold from humidity, slow leaks or poor ventilation is excluded.
- Landlord or dwelling policy: often has narrower mold coverage or a stricter exclusion than a homeowners policy. Landlords should read the fungi wording carefully and ask about an endorsement.
- Condo unit policy: covers the inside of the unit and your belongings. The building's roof is usually insured by the association's master policy, so a roof leak into a condo often involves both policies.
- Renters policy: covers the tenant's belongings damaged by mold from a covered water loss. The building and the roof belong to the landlord's policy.
What every type has in common
- The cause of the water decides coverage, not the mold itself.
- Prompt reporting and drying matter. Mold that spread because a leak was ignored is excluded.
- Mold limits are separate from the main dwelling limit and are often much smaller.
Raising your mold coverage
Some insurers offer endorsements that raise the mold sublimit for an added premium. If your house has a finished basement, older plumbing or a roof near the end of its life, ask your agent what your current limit is.
For roof-related mold, see interior water damage from roof leaks and wear and tear vs storm damage.