Does Homeowners Insurance Cover Mold?

Does homeowners insurance cover mold? Statistics show that an estimated 70% of houses currently have mold.

But not all insurance policies cover mold, depending on the underlying cause. The homeowners insurance policy itself must also be examined.

Does Homeowners Insurance Cover Mold? It Depends

Homeowners insurance policies vary from company to company. Normally, though, mold is not covered by traditional homeowners insurance policies.

It is typical for homeowners insurance policies to exclude maintenance problems that arise from neglect. Mold is caused most often by a failure to clean or aerate the bathroom or other enclosed spaces, such as closets.

Depending on your coverage, homeowners insurance policies may only cover part of the damage caused by mold in your home. Coverage limits can also dictate how much you are on the hook for monetarily. To find out what homeowners insurance does not cover, look to your contract and investigate further.

What Is the Underlying Problem?

If mold growth is associated with neglect, as mentioned before, it likely has been getting steadily worse over time. Leaky pipes left to leak or unsealed windows left to grow mold for a long time before tended to are examples of neglectful behavior.

In the eyes of the insurance company, you will have had plenty of opportunities to mitigate the damage. This type of situation does not bode well for coverage purposes. It even can affect your health negatively.

Unfortunately, if you live in a humid area, mold can also grow rapidly. But weather conditions largely do not factor into homeowner insurance policies either.

If, on the other hand, mold growth is associated with emergency water damage and you can prove that you responded promptly to the problem, the insurance company should not have a problem paying out according to the contract.

For instance, to extinguish a home fire, firefighters must use an excessive amount of water to put out the flames. You will likely have to temporarily move out and mold can proliferate under these conditions. You will likely have even more damage to fix, too.

Another example is when a water heater fails. This can cause mold to grow in areas surrounding the tank. That is not the homeowner’s responsibility and likely will be covered under an insurance policy.

Act Now to Protect Your Home

For homeowners wondering, “Does homeowners insurance cover mold?” you are not alone. The answer depends not only on the circumstances but also your specific contracts’ particulars.

The best line of defense is to protect your home and know your options ahead of time. The more proactive you are about caring for your home, the less you will be on the hook for later. Good preventative home maintenance also has the power to affect your home’s value on the market.

For more information on how to best care for your home, research how to prevent mold or further damage to your house by taking a look at our other posts. Several tips or simple projects can uplift your home and keep your investment secure throughout the winter.