A common question we get is “will insurance cover mold issues?” The answer depends on your policy and the cause of the mold:
Most standard homeowners insurance policies do not cover mold damage unless it results from a “covered peril” — an event that your policy explicitly protects against. Typical mold related events include:
- Sudden and accidental water damage - If mold develops due to a burst pipe in your wall, a malfunctioning appliance, or an emergency water leak, your policy should cover the water damage and the mold remediation
- Storm damage - If a storm damages your roof, allowing water to enter and cause mold growth, insurance might help pay for the repairs and mold removal
- Mold rider - if your homeowners insurance has optional mold coverage added on almost any mold treatment will be covered but there is a strict limit on the cost of coverage and is typically around $5,000. This is not common and we’ve seen this on less than 5% of policies
Insurance companies typically deny coverage for mold that results from:
- Neglect or poor maintenance: If you have a slow leak that goes undetected for months, leading to mold growth, insurers often classify this as a maintenance issue and deny coverage
- High humidity or condensation: If mold appears due to high indoor humidity, poor ventilation, or a damp basement, it is considered a preventable issue, and insurance will not cover it
- Flooding: Standard homeowners insurance does not cover floods or flood-related mold damage. You would need a separate flood insurance policy for that
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