Does homeowners insurance cover mold?

What is mold insurance coverage?

Mold insurance coverage is an inclusion or endorsement on your homeowners insurance that covers mold remediation and repair of mold-damaged items. Mold is typically covered by home insurance when it’s a direct result of a covered loss, but some policies exclude it or put special limits on it. You may be able to purchase an endorsement for additional mold coverage.

For example, if a storm damages your roof, allowing water to get inside, and mold results from that water damage, home insurance will likely cover it. That’s because the particular type of water damage and the peril (a storm) that caused it are covered by home insurance.

What does mold insurance cover?

The mold coverage included with your home insurance is limited to mold that results clearly and directly from a covered peril, and there’s a cap on that coverage. It will cover damage to the structure and personal property, subject to the policy's limits and exclusions.

“Most home policies include coverage for mold if damage [results] from a covered peril, such as a sudden and accidental water leak. Other perils, or causes of loss, [insurance] may not cover for mold damage,” McKenzie says.

A mold insurance endorsement may lift that cap and provide extended coverage for mold remediation. It may also cover mold in extended circumstances. If your policy excludes mold entirely, an endorsement is the only way to get coverage. However, mold insurance endorsements vary by company, and coverage will differ.

If you have mold coverage, it will pay for:

Removal of damaged materials, including drywall
Cleaning and removal of the mold
Repair or replacement of anything damaged by the mold

What isn’t covered by mold insurance coverage?

Mold caused by a flood is always excluded because floods are excluded from home insurance coverage. Home insurance generally won’t cover anything caused by poor maintenance, or that could have been prevented. If your window frames are rotting, or if your basement is very humid and you don’t take steps to deal with it - like replacing windows or buying a dehumidifier - insurance generally won’t cover resulting mold.

Even with a mold endorsement, you may still be denied coverage if a covered peril didn’t cause the mold. Mold endorsements may include additional perils, increase coverage, or add coverage for mold caused by a covered peril.

Read your policy carefully to see what isn’t covered.

Is mold insurance worth it?

Mold endorsement insurance coverage may be worth it if you live in a location with high humidity or in a home prone to mold damage; for example, an older home with a lot of wood or that isn’t sealed as well as a newer one.

“Homeowners who live in certain geographic areas that are more prone to mold damage may benefit from adding a mold endorsement to their insurance policy,” McKenzie says

Of course, if you live in a high-risk area, the cost of a mold endorsement on your insurance will also likely be higher.

What insurance companies cover mold damage?

Companies that include some amount of mold coverage include Nationwide, American Family, Travelers, Liberty Mutual, Kin Insurance, and USAA. The coverage amount and availability vary by state, so make sure to ask when requesting a quote. Some of these companies also offer mold endorsements.

Mold insurance may be available from:

Nationwide
American Family (endorsement available for extended coverage)
Travelers
Liberty Mutual
Kin Insurance
USAA

FAQ: Mold insurance coverage

Does home insurance cover mold from water damage?

Yes, mold from water damage is covered if the water damage is caused by a covered peril. For example, water damage from a burst pipe is covered, so the mold will also be covered. Flood damage and resulting mold are not covered by homeowners insurance, and flood insurance doesn't usually cover mold, either.

Does homeowners insurance cover mold in a crawl space?

Yes, mold in a crawl space is covered if it was caused by a covered peril. Mold resulting from humidity or other non-covered perils will not be covered.

Does home warranty cover mold?

No. Home warranties typically do not cover mold. Home warranties usually cover repairs or replacements of major home systems and appliances due to normal wear and tear. Mold issues are generally considered the result of environmental factors or maintenance problems and are not covered.