Does Insurance Cover Mold Damage?

mold damage

Mold damage in homes is common, but is it commonly covered by standard homeowner’s insurance? Like so many questions about insurance coverage, this typical answer frequently applies to mold damage, too: “It depends.”

Specific circumstances surrounding mold contamination issues can spell the difference between fair insurance compensation and having to pay for the damage out of your own pocket. Here are some examples of when homeowner’s insurance coverage applies to mold damage and when it doesn’t.  

Sudden and Accidental” Incidents

This represents the largest category of mold damage that does qualify for coverage under a standard homeowner’s policy. Water damage inside the house is the most common cause of mold. The “sudden and accidental” term applies to unforeseeable water damage incidents such as sudden pipe breakage, an appliance overflow, or a ruptured water heater. Another cause that qualifies under this category is mold due to water released by firefighters extinguishing a fire in the house.

Maintenance Issues and Chronic Causes

Mold may be caused by ongoing problems that aren’t recognized and/or not responsibly addressed by the homeowner. This includes scenarios like a roof leak that isn’t repaired in a timely manner or neglected household plumbing maintenance. When mold ensues after one of these preventable causes, coverage under a standard homeowner’s policy will usually be denied.  

Certain circumstances beyond the homeowner’s control may also rule out compensation for mold damage. For example, if mold growth is triggered by high humidity which is a natural feature of the local climate, insurance compensation for mold remediation will be denied. 

Are There Other Options?

In certain cases, insurance companies offer a special mold endorsement to a standard homeowner’s policy that includes many types of contamination not usually covered. This is available at an increased yearly premium.

What About Flooding?

Water damage and resultant mold contamination due to outdoor flooding or inundation from severe storms aren’t covered by homeowner’s insurance. Insurance coverage for damage caused by flooding is provided by the National Flood Insurance Program, a program administered by the federal government and available to all homeowners.  


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