Generally speaking, a standard homeowners insurance policy will only cover mold damage that results from a “sudden and accidental” covered peril. Examples include a pipe bursting or storm damage that lets water in.
When does your home policy cover mold damage?
It all depends on what caused the mold in the first place. Usually, your home policy will cover mold damage if it was caused by a “sudden or accidental” water event. The amount of mold removal coverage that you have varies by home insurance carrier. Typically, the amount ranges from $1,000 to $10,000 per occurrence.
Examples of sudden water damage:
- A water pipe bursts
- Your water heater ruptures
- A tree branch punctures your roof during a rain event
- Firefighters use water to extinguish a fire
Additional coverage options
Most home insurance carriers offer additional coverages—also called endorsements—that may cover mold. While these endorsements will cost homeowners extra, they provide great peace of mind. Here are two examples:
Water backup coverage
This additional coverage may pay for mold damage that is caused by drain backups, sewer line clogs and sump pump failures.
Fungi, rot and bacteria coverage
This standard coverage may pay for property damage caused by fungi, which includes mold. If you wish, you can purchase a special endorsement that increases the coverage limit amount.
When does your home policy not cover mold damage?
Homeowners insurance typically won’t cover you if the mold growth is the result of a lack of maintenance or long-term water seepage. For example, your claim will likely be denied if the mold is caused by:
- A long-term leaky faucet or pipe that you neglected to repair promptly
- Improperly sealed doors or windows that lead to water leaks
- Poor ventilation that leads to humidity buildup in your bathroom or some other mold-prone area
Additionally, homeowners insurance will not cover mold damage if the mold is caused by sump pump failure or flood waters coming into your home.
What is mold?
Mold is a form of fungus that uses moisture to grow on household surfaces. It is usually black, slightly fuzzy and may have specks of white, orange, green or brown. Left untreated, it can affect your family’s health and damage your home.
How does mold damage a home?
Over time, mold eats away organic materials like drywall and wood, causing it to rot and fall apart. The longer mold sits, the more it grows, so it’s important to report mold damage to your home insurance carrier right away.
How do you know if you have mold?
Mold can grow just about anywhere in your home where water and moisture is available. Here are some signs that you may have mold growth:
Visible Growth
You might see mold in poorly ventilated places such as basements, beneath carpets, on tiles and behind refrigerators.
Smells
If an area of your home smells musty, it might be due to hidden mold growth. It could be behind walls, beneath flooring or inside air ducts.
Health Problems
Exposure to mold can cause allergy symptoms such as nasal stuffiness, burning eyes, coughing and wheezing.
How to prevent mold
- Install exhaust fans in your kitchen and bathrooms to keep them dry. Use ventilating fans and dehumidifiers in other damp areas.
- Inspect your pipes, faucets, appliances and other water sources for openings where water can escape. Repair any leaks immediately so there’s no chance of standing water.
- Poor ventilation that leads to humidity buildup in your bathroom or some other mold-prone area
- Make sure your gutters and downspouts direct water away from your home. Standing water around your home’s foundation could spell trouble.
- Have your roof inspected regularly to make sure there are no potential leaks.
- Don’t install carpet in areas that are often damp or collect moisture, such as bathrooms and basements.
How to treat mold damage
It’s important to address mold damage right away, because the longer it sits, the more it grows. According to the Environment Protection Agency (EPA), if the moldy area is less than about 10 square feet—such as a patch of mold on a bathroom wall—you can try cleaning it yourself with mold-killing cleaning products. For more extensive damage, you may need to hire a cleaning company that specializes in mold remediation.
What is mold remediation?
Mold remediation is the process of removing harmful mold growth. A professional remediation team will assess the amount of mold in your home, dry out the affected areas and then remove the mold by applying a special fungicide or through other measures. Once the cleaning is done, you may need to repair certain damaged areas, such your floor tiles.