Does homeowners insurance cover mold?
Homeowners insurance covers mold if you purchase the coverage rider. In some states, the coverage is included automatically, and it is important to review this information with your insurance agent to properly verify it is accurate. Many states limit the amount of coverage offered for mold. Typically, an all-perils type policy provides coverage for mold unless it is specifically excluded or limited. You can find this information on the declarations page of your insurance policy. When purchasing a homeowners insurance policy, ask how much coverage the policy provides for mold.
Water damage claims and mold usually go hand in hand. For most insurance claims to be covered, the cause needs to be sudden and accidental. Mold damage from a pipe that has been leaking for years is likely going to be denied by your insurer. In the event of a water leak, it is important to address the problem as soon as possible. Many disaster cleanup companies are available 24/7 and take proactive steps to limit the possibility of mold growth. Additionally, these cleanup companies are usually covered by your insurance.
Mold damage caused by a flood is not covered under your homeowners policy. Flood insurance requires a separate policy issued through the Federal Emergency Management Agency (FEMA) or through a select number of companies that offer private flood insurance.
Many consumers look at the final price of their homeowners policy to make a determination on which company to choose. Review all of your coverages, including a rider for mold, to ensure you are properly insured.