Does home insurance cover mold?

A standard home insurance policy may offer limited mold or fungi coverage under certain circumstances, but coverage details, including limits, will depend on your insurer, policy, and even the state in which you live. Sometimes, mold is excluded from coverage, but homeowners can often add a mold endorsement to enhance their policy.  

When does home insurance cover mold?

When a home insurance policy or endorsement covers mold, you can generally file a claim if the mold is a direct result of a covered peril. Common covered perils that may result in mold include: 

• Burst or frozen pipes, as long as you took reasonable precautions to prevent freezing. 

• Accidental overflow from an appliance, like a washing machine.

• Storm-related water damage, such as after a tree crashed into a roof. 

• Fire-related water damage, such as when sprinklers or hoses are used to extinguish a fire.

However, even when policies cover mold, the insurer may limit the amount they’ll pay for a mold damage claim. As such, review your policy documents or ask your insurer for policy-specific details regarding mold coverage. 

When doesn’t home insurance cover mold? 

Your homeowners insurance policy likely won’t cover mold damage if it’s a result of one of the following: 

• Neglect or poor maintenance, such as failing to address a known, slow leak. 

• Water damage from a backup sewer or failed sump pump, unless you added water backup coverage.

• Water damage from flooding or storm surges, unless you have a flood insurance policy or endorsement. 

• Long-term exposure to high humidity or poor ventilation, such as a damp laundry room. 

Learn more: What home insurance covers.

Other types of insurance that can cover mold damage

To enhance your existing coverage or close any coverage gaps, consider the following home insurance endorsements or stand-alone policies. 

Water backup coverage

You can add water backup coverage to your policy to provide financial protection if your property is damaged by water overflow, such as from a backed-up sewer drain or broken sump pump.

This type of endorsement will cover the cost to repair or replace damaged parts of your home (e.g., walls, ceilings, floors, etc.), damaged personal property, and mold remediation, up to your coverage limits.

Flood insurance

Flood damage, including any resulting mold, is generally excluded from standard homeowners policies. To protect against this, you’ll need flood insurance, either through the National Flood Insurance Program (NFIP) or a private insurer. 

Flood insurance typically covers both the initial water damage and any mold or mildew that forms as a direct result of the flood. Flood insurance is essential if you live in a flood zone and may be required if you have a mortgage on your property or live in a home that has received FEMA aid in the past.  

Should I file an insurance claim for mold?

Filing a home insurance claim for mold can help you avoid steep out-of-pocket repair costs, especially if the damage is widespread or requires professional remediation. When mold is covered by home insurance, the claim payout can help you cover the cost of remediation and repairs. If your policy includes loss of use insurance, it may also cover temporary housing if the damage forces you out of your home.

Filing a mold claim might be worth it if:

• The mold damage is extensive and beyond what you can safely handle.

• It stems from a covered peril, like a burst pipe or efforts to contain and put out a fire.

• The estimated cost of remediation is higher than your deductible. For example, if your deductible is $1,000 and mold removal is estimated at $6,000, filing a claim may make financial sense. 

• You're concerned about health risks associated with mold exposure, especially for young children, elderly adults, or anyone with respiratory conditions.

Make sure to weigh the potential benefits against the possible downsides. One of the most significant considerations is that filing a claim could impact your future premiums, especially if you’ve filed other claims in recent years. Sometimes, an insurer may even choose not to renew a policy if there are repeated water damage or mold claims.

Further, keep in mind that many insurers place a cap on the total amount they will pay out after a mold claim. 

How to prevent mold damage

The best defense against mold is prevention. Mold thrives in damp, humid environments, so regular maintenance and preventive measures go a long way. Here’s what you can do:

• Ventilate moisture-prone or high-humidity areas, like bathrooms, kitchens, and laundry rooms.

• Fix leaks promptly, whether it's from a roof, pipe, or appliance.

• Seal cracks and improve insulation around windows and doors.

• Use dehumidifiers in moisture-prone areas.

• Get routine inspections, especially in older homes or after storms.

You can also hire a professional to test for hidden mold if you suspect an issue, especially after water damage.