Is Mold Damage Covered by my Home Owners Insurance?

12/7/2017 (Permalink)

Most people do not know what their policy includes and does NOT include.

Whether or not mold damage is covered by home owners insurance often comes down to the source of the moisture. Take an hour or two to review the language of your policy, especially as it pertains to water damage. Look for mold exclusions or limitations. Call your agent if the wording is unclear.

Most basic home owner’s insurance policies exclude coverage of damage caused by mold, fungi, and bacteria.  Yet that doesn’t mean a mold claim will be denied automatically.  In most cases, if mold results from a sudden and accidental covered peril, such as a pipe bursting, the cost of remediation could be covered. That’s because technically the pipe burst is the reason for the claim, not the mold itself. Claims are more likely to be rejected if mold is caused by neglected home maintenance: long-term exposure to humidity, or repeated water leaks and seepage.

If you are worried and prone to mold in your home it might be possible to purchase a mold rider as an add-on to your existing home owner’s policy. Ask your agent. A rider will offer additional mold coverage.