Does Homeowners Insurance Cover Mold? Why This Common Problem Can Turn into a Nightmare

Does Homeowners Insurance Cover Mold? Why This Common Problem Can Turn into a Nightmare

Mold is a pesky problem for many homeowners. Not only are costs of repair high, but this fungus can also lead to various respiratory health problems. While homeowners insurance protects your house in a wide range of circumstances, the key is knowing what situations you’ll receive coverage for. Since mold repair expenses are so high, a common question persists: Does homeowners insurance cover mold? Different policies will have varying conditions. Generally, the cause of the growth determines whether you get covered or not.

 

When Does Homeowners Insurance Cover Mold?

 

Your policy will often cover mold if the cause is related to a covered event. Even then, it might not cover the full cost of the repair.

 

If a burst pipe causes the growth and your insurance covers this event, then you will be able to file a claim with an adjuster. If fungus forms in response to a flood, then your homeowners insurance will not cover your request. In this case, you will need a separate flood insurance policy.

 

Some large insurance companies do not deal with mold at all, even if related to a covered event. Others will cover damage up to a certain price. The cap is often between $1,000 – $10,000.

 

Does Homeowners Insurance Cover Mold in Other Circumstances?

 

Some instances of mold occur because of low maintenance in your home. This includes neglecting broken roofs, poor ventilation, and burst pipes. Insurance companies will expect you to keep your home in a reasonable condition. If negligence causes fungal growth, then your policy will likely not cover you.

 

In other cases, your house might be at a high risk of developing mold. This is often the case if your home is older or has other mold-related insurance claims. As a result, your insurance might not cover the repair or charge you higher rates for coverage.

 

Homeowners can be caught off guard when they realize their policy does not cover mold damage. You can imagine the cost of paying for some (or all) of a repair out of pocket. Fees typically range between $500 – $6,000. Prices can skyrocket into the tens of thousands if the growth is widespread. These expenses do not include the cost of getting an inspector to test your home. That’s why it is essential to know if your policy covers this event beforehand.

 

Areas with humid climates, such as Florida, are the worst culprits for fungal growth. If you live in one of these high-humidity states, you will likely want to switch over to a homeowners insurance policy that covers mold.

 

Ultimately, your best tactic is to prevent mold formation before it happens. You can do this by:

 

  • Repairing any leaks as soon as possible
  • Thoroughly drying absorbent materials and fabrics (like rugs)
  • Promoting open ventilation throughout your home
  • Keeping the humidity low in your home

 

File a Claim for Mold Damage

Despite your best efforts, mold can still creep into your home at inopportune times. Reach out today to file a claim for damage or review your insurance policy.