Will homeowners insurance pay for mold damage?
Short answer. Homeowners insurance pays for mold damage only when the mold came from a covered water loss, and usually only up to a mold sublimit that applies to everything combined. That limit can have to stretch across tear out, rebuilding, damaged belongings and sometimes living expenses, so it is worth knowing the number before you need it.
What counts as mold damage in a claim
- Building materials: drywall, insulation, trim, flooring, subfloor, framing and roof decking that has to be removed or treated
- Remediation: containment, removal and cleaning
- Contents: furniture, rugs, clothing and stored items that cannot be cleaned
- Testing: in some policies
- Additional living expense: if the home is unsafe or unusable during remediation, depending on the form
How the limit works
Many policies set one dollar cap for all mold related costs from one loss. A large remediation can use up a small limit quickly. Some insurers sell an endorsement that raises it. Ask your agent for the exact figure and whether it is per occurrence or per policy term.
What has to be true first
The water that caused the mold must itself be covered: storm damage to the roof, a burst pipe, an appliance failure. Mold from humidity, condensation, slow leaks or deferred maintenance is generally excluded no matter how much damage it causes.
Protecting the claim
- Report the water loss the day you find it.
- Dry quickly and keep the drying logs.
- Photograph mold before anyone removes it.
- Ask the adjuster which costs fall under water damage coverage and which under the mold limit.
For roof related losses, see interior water damage coverage and date of loss.