Does home insurance liability coverage pay if mold makes someone sick?
Short answer. Often not. Many homeowners policies exclude mold, fungi and bacteria from personal liability coverage as well as from property coverage, so a claim that mold in your home made a guest or tenant sick may not be covered. Policies vary, some include limited mold liability coverage, and an insurer's duty to defend can be broader than its duty to pay, so report any such claim right away.
How liability coverage normally works
The personal liability part of a homeowners policy pays for injuries to other people and damage to their property when you are legally responsible, plus the cost of defending you in a lawsuit. It usually has no deductible. Mold is the exception many insurers carve out, because mold injury claims are expensive and hard to measure.
What to look for in your policy
- A fungi, wet or dry rot, or bacteria exclusion that applies to liability coverage, not just property.
- A limited mold liability endorsement with its own cap.
- Any umbrella policy you carry, which may follow the same exclusions or have its own.
Landlords face more exposure
Georgia law requires landlords to keep rental homes in repair, and a roof leak left unfixed is a common start to mold disputes. Rental homes need a landlord policy, not a standard homeowners policy, and the mold terms in that policy matter.
If someone makes a claim
- Notify your insurer in writing immediately, even if you expect an exclusion.
- Do not admit fault or promise to pay.
- Fix the water source and document the repair with dates and photos.
- Talk to an attorney if a lawsuit is filed.
Stopping water quickly is the best liability protection. See interior water damage coverage and your duty to mitigate.