Does home insurance cover mold?

Mold is usually only covered by homeowners insurance if it is caused by one of the "named perils" (events or circumstances covered in your homeowners insurance policy, such as accidental water damage). Mold caused by a burst pipe, for example, or an appliance suddenly malfunctioning, will almost certainly be covered by insurance.

Mold damage caused by: Your homeowners insurance policy may also cover mold damage caused by:

• A broken water heater.
• Water damage caused by extinguishing a fire.
• A burst or frozen pipe.

Though your policy may cover mold damage caused by a broken appliance, it is unlikely that it will cover the device's replacement. This is due to the fact that most insurers only cover the resulting water and mold damage, not the cause of the damage.

Some insurance companies have a limit on how much they will pay for mold removal. Even if your policy accepts your claim, you may still be required to cover some of the costs.

It's critical to thoroughly read your policy to understand the scope of your coverage as well as what you'll need to do if you need to file a claim.

When is mold not covered by homeowners insurance?

Mold caused by neglect or a lack of routine maintenance is typically not covered by home insurance policies. This includes mold damage caused by:

• Improperly sealed doors or windows.
• An unaddressed leaky faucet.
• Poor ventilation in a moist room, like a bathroom.

Other common causes of mold damage that are typically not covered by a standard home insurance policy are listed below.

Sump pump failure and water backup damage. Damage caused by water backup and a sump pump failure can be costly and usually isn't covered by standard home insurance policies.

Many insurers will allow you to supplement your policy with sump pump failure and water backup coverage. Mold damage in those situations is unlikely to be covered by a standard homeowners insurance policy without this type of coverage.

Flood damage. Flooding is not typically listed as a peril in standard homeowners insurance policies. As a result, you will need to purchase additional flood insurance to be covered for flood damage.

Even if you have flood insurance, it's possible that it won't cover mold damage. For example, if you buy your insurance through the National Flood Insurance Program, or NFIP, mold damage may be covered only if you are unable to access your home after flooding for specific reasons.

It's worth noting that mold damage coverage varies depending on the flood insurance policy. If you have any questions about what your policy covers, contact your insurer.

Other coverage options

Even if your standard home insurance policy does not typically cover the scenarios listed above, you are not out of luck. The following are some extra coverage options that your insurer may provide.

Sump pump failure and water backup coverage can protect you against water and mold damage from a backed-up drain, sump pump failure or a clogged sewer line. However, sump pump failure and water backup coverage will likely not cover you against gradual issues such as water leaking in through your home's foundation. It also won't cover things like flooding caused by a rising river or lake near your home.

Hidden water damage coverage compensates for damage caused by concealed water leaks, such as a burst pipe behind a wall. This coverage may also include mold cleanup. Because a mold claim is unlikely to be covered unless it is the direct result of accidental water damage, you should think about adding hidden water coverage to your policy. However, your insurer may not provide this type of coverage, so check to see if it is available.

What to do if you have to file a mold claim

Mold can form in as little as one day, so acting quickly is critical.

1. Stop the leak as soon as possible. If your home has a water leak or a burst pipe, turn off the main water valve as soon as possible. Make sure you know where your home's main water shut-off valve is ahead of time so you aren't caught off guard in an emergency.
2. Document the damage. Take pictures and videos of any mold or water damage you discover. Make a list of everything that has been ruined. Be as thorough as possible while avoiding errors or exaggeration. Any false reporting, no matter how inadvertent, can work against your claim.
3. Clean up excess water, and dehumidify the area. Wipe up any pools of water and dry out the area with a dehumidifier or air conditioner. Place any wet items outside in a safe location to dry. Consider hiring a professional if you're having trouble cleaning up the water yourself. Your insurance agent may be able to assist you in locating reputable water removal professionals in your area.
4. Make temporary repairs to prevent further damage. You don't want to make major changes before filing your claim, but once you've documented the damage, make the necessary temporary repairs to protect your home from further damage. If your basement is flooded, for example, you may want to remove wet carpeting. Keep track of your receipts for any purchases you make for temporary cleanup and repairs.
5. File as soon as you can. Read your policy and follow the claims procedure exactly as outlined as soon as possible.

Stopping mold before it starts

Mold can be prevented in your home by following these guidelines:

• Inspect your pipes, faucets and hoses regularly, and fix any leaks right away.
• Make sure that rainwater is directed away from your home.
• Use air conditioners and dehumidifiers to keep humidity low in your home.
• Install exhaust fans to improve the ventilation in your bathroom and kitchen.
• Avoid installing carpet in areas at risk for collecting moisture, such as a basement or bathrooms.
• Regularly inspect your roof for leaks and keep your gutters free of debris.
• Consider replacing the hoses to your dishwasher, washing machine, refrigerator and other large appliances every five years.