Mold growth in your home is a serious concern. Not only can it lead to health problems and structural damage, but it may also require expensive home repairs. If you’ve found mold in your walls or basement, you may be wondering, “Does homeowners insurance cover mold removal?” The answer largely depends on what caused the mold to grow and how long it’s been lurking in your home.
Here’s a closer look at when homeowners insurance covers mold, when it doesn’t, and how to file a claim for reimbursement.
Key Points
• Homeowners insurance generally covers mold damage from sudden, accidental water-related incidents.
• Keeping current with maintenance and promptly repairing leaks can forestall mold growth.
• To file an insurance claim, document mold damage and report it quickly.
• Keep receipts to confirm your expenses when you file your claim.
• For an additional cost, you can get more extensive coverage by adding flood or sump pump riders.
When Homeowners Insurance Covers Mold Damage
Homeowners insurance covers mold damage if it’s been caused by a “covered peril” listed in your policy. Some examples are:
• A burst pipe
• A broken water heater
• An overflowing appliance, such as a washing machine or dishwasher
• Water damage that came from extinguishing a fire
Let’s say, for example, your dishwasher starts malfunctioning and water leaks into your kitchen. If this leak causes black mold to grow on the floor, your homeowners insurance policy may cover the black mold’s removal charges and some or all of the floor replacement cost.
In addition to the mold being traced to a covered peril, the water damage must be a sudden and accidental occurrence. If the mold has been growing for a long time due to lax home maintenance, its removal probably wouldn’t be covered by homeowners insurance.
Homeowners insurance also won’t cover the appliance if it breaks down due to general wear and tear. If you’re looking for appliance coverage, consider a home warranty.
Recommended: Are Home Warranties Worth It?
When Homeowners Insurance Does Not Cover Mold Damage
In general, homeowners insurance doesn’t cover mold damage if it’s due to long-term neglect or deterioration. If the mold grew as a result of poor ventilation in your bathroom, for instance, the insurance company will likely consider it a preventable maintenance issue and not provide coverage.
Here are some instances when homeowners insurance doesn’t cover mold remediation:
• Lack of regular upkeep: Homeowners insurance doesn’t cover plumbing issues that are the result of slow leaks or a lack of routine maintenance. Similarly, insurance won’t cover mold damage that stems from neglect or negligence. For instance, it wouldn’t cover mold that came from a leaky faucet you didn’t fix or rainwater that got inside because you left a window open.
• Construction defects: You’ll also be out of luck if the mold grew due to leaks from poor construction, repairs, or building materials.
• Flooding: A standard homeowners insurance policy doesn’t include flooding, though you can buy a separate flood insurance plan. Be aware that standard National Flood Insurance Program policies don’t cover mold damage.
• Sump pump failure: A sump pump drains water away from your property, but if it fails, your basement might flood. When mold damage results from a broken sump pump, a homeowners policy usually won’t cover that. But if you have purchased optional sump pump and water backup coverage as an add-on, such homeowners policy options might cover mold from a sudden sump pump failure, broken drain, or backed-up sewer line.
Read over the fine print of your policy to understand whether your homeowners insurance covers mold. If you opt for flood or sump pump riders, expect these add-ons to increase your monthly homeowners insurance policy costs.
Preventing Mold Damage in Your Home
Mold can damage the structure of your home and be a hazard to your health. Here are a few tips to prevent it from spreading in your house.
• Routinely inspect pipes, faucets, and appliance hoses and fix any leaks as soon as possible.
• Clean bathroom tile and other non-porous surfaces with bleach or another mold-killing product.
• Use dehumidifiers or air conditioners in your home to reduce humidity.
• Install exhaust fans in your kitchen and bathrooms to improve ventilation.
• Get rid of carpet in areas that tend to get damp, like your basement or bathrooms.
• Look for leaks in your roof or water in your attic regularly.
• Clean out your gutters and make sure they drain rainwater away from your house.
• Seal doors and windows to keep moisture out of your home.
• Clean up spills or water damage right away, and let areas dry out completely before you replace a wall, flooring, or other material.
Controlling moisture in your home with regular maintenance and repairs can reduce the risk of mold. If you need medical coverage for mold-related health problems, you may want to check out this guide to health insurance.
How to File a Mold Claim
If you need to file a mold claim, contact your insurance company right away. You’ll also want to address the mold issue as soon as possible to prevent spread. Here are some steps you’ll need to take.
• Stop the leak right away: If a pipe bursts, shut off the main water valve to prevent more water from leaking into your home. Cover up holes in your roof or other damaged areas that are letting water into your home.
• Take photos of everything: Document the damage with photos and videos to provide evidence when you submit your claim.
• Dry up the affected areas: Clean up mold-infested areas and use a fan or dehumidifier to get rid of moisture. Remove the wet carpet and dry the items that got soaked. Certain cleaning products, including vinegar, can help combat mold growth.
• File your mold claim: Some insurance companies let you file online, over the phone, or via mobile app. Contact your insurance provider if you’re unsure about how to file your claim or have other questions about how thoroughly your homeowners insurance covers black mold.
• Keep your receipts: If you paid to make repairs or relocate damaged items, keep your receipts to file for insurance reimbursement. Your insurance provider may also help you find professional cleanup specialists in your area, such as a water removal contractor or mold remediation company.
Since insurance companies typically don’t cover mold that’s due to neglect or long-term moisture, you must show that a sudden covered event led to the mold in your home and that you tried to mitigate the damage. By documenting your cleanup efforts, you can show that the mold was unavoidable. That evidence should increase your chances of claim approval.
The Takeaway
Mold can cause serious home and health problems if left unchecked. It isn’t always possible to avoid it completely, especially after random occurrences like the bursting of a pipe. Your homeowners insurance policy may cover mold removal or home repairs. As a rule of thumb, if the mold is the result of a sudden covered event, you may be reimbursed. If the mold came about due to a long-term leak or other issue, you’ll probably have to shoulder the costs.
When the unexpected happens, it’s good to know you have a plan to protect your loved ones and your finances. SoFi has teamed up with some of the best insurance companies in the industry to provide members with fast, easy, and reliable insurance.
FAQ
Is mold caused by a leaky roof covered by insurance?
Mold caused by a leaky roof may be covered by insurance if it was caused by a “covered peril” in your homeowners insurance policy. For instance, you may have coverage if the leaky roof was caused by hail damage, a fallen tree, or a fire. If the leaky roof was due to regular wear and tear, however, then your insurance wouldn’t cover the resultant mold (or the damaged roof).
How expensive is mold removal?
Mold removal typically costs $10 to $25 per square foot, according to Angie’s List. This Old House estimates that mold remediation should cost $1,500 to $9,000 and puts the average cost at $3,500.
Does my policy pay for mold testing or inspection?
Your homeowners insurance policy may pay for mold testing and inspection if the mold came about as a result of a covered peril, such as a burst pipe or other sudden water damage. You’ll have to check your specific policy to find out how much it covers toward mold testing, inspection, and remediation.
Are health problems caused by mold covered?
Homeowners insurance doesn’t cover a policyholder’s mold-related health problems, but it may pay for someone else’s medical bills if they were injured on your property. This “medical payment to others” coverage, also known as Coverage F, can pay for someone’s doctor visits, hospital stays, and other medical care they needed due to a covered incident in or near your home.
Why is mold coverage so limited by insurance companies?
Insurance companies limited their mold coverage in the early 2000s after several high-profile lawsuits required major payouts from the insurance industry. To cut costs, they revised their policies to cover only mold caused by sudden, accidental events, rather than long-term neglect or wear and tear. Homeowners insurance is now generally designed to cover sudden accidents rather than problems that arise due to a lack of maintenance.
photo credit: iStock/PonyWang
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