What is mold insurance, and do homeowners need it?
Short answer. Mold insurance is usually not a separate policy but an endorsement that adds or raises mold coverage on a homeowners policy. It pays for mold that results from a covered water loss, such as a storm opening in the roof or a burst pipe, up to a set limit. It never covers mold from humidity, slow leaks or poor ventilation.
How mold coverage is structured
Most homeowners policies exclude mold, fungus and wet rot, then give back limited coverage when mold follows a covered water event. That coverage often has its own sublimit, which can be far smaller than the cost of serious remediation. A mold or fungi endorsement raises that limit, and some broaden what counts.
What it typically pays for
- Removing and replacing mold damaged drywall, insulation and framing
- Remediation work such as containment and cleaning
- Testing, in some policies
- Additional living expense if the home cannot be lived in during remediation, depending on the form
What it never pays for
- Mold from high indoor humidity, which is common in Georgia summers
- Attic mold from poor ventilation or bath fans venting into the attic
- Mold from a leak you knew about and did not fix
Who should consider it
Homes with finished basements, older roofs, lots of plumbing in walls, or a history of water claims. Ask your agent for the current mold limit in dollars and the price to raise it.
The best mold insurance is fast action. Mold can begin growing on wet materials within about 24 to 48 hours in warm weather, so tarp the roof and start drying immediately after a leak. See emergency tarping and interior water damage coverage.