Mold is the dirty little secret many households don’t want to talk about. You can find it lurking in damp corners, under floors, or even inside air vents. It’s a serious issue for your home and your health, and you can’t afford to ignore it.
Mold can damage your home, ruining drywall, woodwork, and more. It can also cause a range of health symptoms, from allergy and respiratory reactions like asthma to skin rashes. And mold can even decrease your home’s value by an estimated 20% to 37%, according to academic research published in the spring 2005 issue of the “Appraisal Journal.” The article is based on litigated toxic mold cases and other research.
Despite the risks, mold is a common household problem. Nearly every indoor environment has mold spores. But you can prevent mold problems. DIY and professional mold remediation solutions can help, but they can be costly. That’s why some homeowners turn to their homeowners insurance to help defray costs.
“Mold coverage in homeowners insurance can vary by case, with not every situation covered,” says Peter Piotrowski, chief claims officer at Hippo, a national property insurance company. “Mold issues are complex to handle due to the difficulty in removing [mold] and tracing its origin — key factors when filing a claim.”
This detailed guide highlights what you need to know about homeowners insurance coverage for mold, plus how to better manage and prevent mold issues.
What is Mold, and Why Is It a Concern for Homeowners?
Mold is a form of fungus that can be found wherever moisture and oxygen exist, according to the U.S. Environmental Protection Agency. It typically grows when excess moisture accumulates and can be found on many surfaces, like wood, paper, carpet, and food, and even in the air you breathe. Mold can quickly spread through tiny reproductive cells called spores, which can travel through the air and around a household. Mold is most commonly found in high-humidity areas, like bathrooms and basements, but can also exist behind walls or under the home’s flooring. (Learn more: Unexpected Places Mold Can Hide.)
Is That Mold?
| Color: | Black, white, orange, gray, green, or brown |
| Texture: | Fuzzy, powdery, fluffy, slimy, or spongy |
| Smell: | Musty, damp, pungent, or stale |
| Location: | Found on surfaces like wood, paper, carpet, and food, and even in the air; mold thrives in dark damp spaces |
Mold can cause structural damage in homes — for example, to the drywall, insulation, and other building materials. Prolonged exposure to mold can also affect your health. Mold has been associated with respiratory issues, like allergy symptoms and asthma, leading to shortness of breath, runny noses, red eyes, headaches, dizziness, and skin rashes, according to the EPA. Mold exposure can particularly harm children, the elderly, and those with pre-existing illnesses.
When Does Home Insurance Cover Mold?
Standard homeowners insurance policies cover mold remediation only if the mold is caused by a “peril” — a “sudden” or “accidental” event.
“Insurance policies typically outline instances of sudden and accidental water damage, such as mold claims from burst pipes, broken appliances, or overflowing toilets,” says Cassie Sheets, data analyst and journalist at Insurify, an insurance comparison resource. “If the mold isn’t a result of a sudden or accidental event, it will likely not be covered.” For example, an insurer could classify mold from a gradual water leak — like one under the sinks or from basement seepage — as owner neglect, not a peril. Claims for such situations would likely be rejected, Sheets says.
“Reviewing your policy in detail will clarify which mold-related damages are covered,” Piotrowski adds. “Before signing or renewing a policy, it’s wise to research which mold scenarios are included. This way, you’ll know what to expect if a claim becomes necessary, and you’ll be prepared for any deductible or costs involved.”
Mold: What Does Insurance Cover or Not Cover?
Here are some scenarios that are common but that a standard homeowner’s insurance policy may or may not cover. However, insurance policies differ widely, and you’ll want to review you policy carefully.
| Events likely to be covered: | Events unlikely to be covered: |
| A water heater rupture | Mold in the shower |
| An overflowing dishwasher | An ongoing leak that a homeowner failed to promptly fix |
| Appliance or equipment malfunction | Damage from a flood or heavy rainstorm (this usually requires a separate flood insurance policy) |
| Frozen, leaking, or burst pipes | Sewer backup |
| Water overflowing within a plumbing system, HVAC unit, or appliance | Sump pump failure |
| Damage caused by the weight of snow, ice, or sleet | Poorly sealed doors or windows |
| Sudden, accidental discharge of water, for example, from burst pipes | Poor ventilation in high humidity areas, like the bathroom |
When Home Insurance Does Not Cover Mold
In some situations, your insurance may not cover mold damage, leaving you to foot the bill for cleanup. Uncovered insurance claims from mold damages often stem from homeowner neglect in maintenance, Piotrowski says.
Insurance companies often require homeowners to report any mold issues promptly if they’re seeking to file a claim. If a homeowner becomes aware of a mold issue but lets the mold spread — such as with an unaddressed water leak — an insurance adjuster would likely decline a claim because of homeowner negligence, Piotrowski says.
Also, standard homeowners insurance policies typically don’t cover mold issues that were caused by damage before the policy start date or were present before the home purchase, Piotrowski notes. “A thorough inspection when buying a new home can help identify any mold risks” prior to purchasing a home, he says.
Supplemental Home Insurance Coverage Options
Homeowners insurance companies offer endorsements, which provide additional coverage and protection to a home. They can be added to a standard homeowner’s insurance policy.
“If a homeowner wants more protection from mold, they can purchase separate endorsements for comprehensive mold damage coverage,” Sheets says. Homeowners who live in high humidity areas or have homes made with materials more prone to mold — like wood or vinyl —may want to consider purchasing supplemental insurance. But as always, “be sure to compare rates and limits from multiple insurers to get the best coverage,” she adds.
Supplemental insurance, like sewer backup or hurricane coverage, may cover mold if it results from a covered event, Piotrowski says. “Adding a mold endorsement or purchasing flood or hurricane insurance can also increase protection.”
Here are a few add-on homeowners insurance riders to consider for extra protection against mold:
Sewer Backup Insurance
This covers damage from broken sump pumps or clogged sewer lines, which could cause backups in a bathtub, toilets, basement, or other places around the home. The damage may be caused by clogged pipes, tree roots, or broken pipe lines. This endorsement will help pay for repairing a sewer line or removing sewage and water from the house, either of which may have caused the mold. This endorsement is sometimes called “water backup insurance” or “drain line backup coverage.”
Hidden Water Damage Coverage
This provides protection from water leaks that can occur behind walls or cabinets, beneath floors, or in other unseen areas. These types of water leaks could cause major damage over time, leading to extensive mold issues.
Flood Insurance
A flood insurance policy can cover damage caused by water entering a home because of heavy rains, overflowing rivers, or nearby waterways. Still, mold will be covered only in certain situations. The National Flood Insurance Program generally won’t cover mold damages unless the owner can’t access their home because floodwaters remain around the home and are keeping the owners from preventing further damages, according to the Federal Emergency Management Agency.
Windstorm and Hurricane Insurance
Windstorm and hurricane insurance protects properties from damage caused by wind, hail, or hurricane hazards. It typically covers physical damages to the property, including mold that may be caused by water damage, as well as the loss of the owner’s personal belongings.
Mold and Earthquake Insurance
This covers mold damage and earthquake-related losses, addressing gaps left by standard home insurance.
Is It Worth Filing a Claim?
Your homeowner’s insurance policy can help offset pricey home repair costs, but don’t expect it to cover everything. Homeowners will need to factor in their homeowner’s insurance deductible — the amount of a claim they’ll need to pay out of pocket before insurance kicks in. These typically are flat dollar amounts, often ranging from $500 to $2,000.
For example, let’s say you have a $2,000 deductible and you submit a claim for $2,363, which is the average cost of mold remediation in the U.S. Your insurer will pay only $363 toward the cost; you’d need to pay the $2,000 deductible. Homeowners will need to determine if the $363 payoff would be worth it. Keep in mind that insurance companies often raise premiums after you file a claim, with just a single claim raising premiums, on average, by 9%, according to a NerdWallet analysis. That premium could offset the benefit of the claim’s payment.
For minor mold damage — considered less than a three-foot-by-three-foot patch, according to the EPA — you may be able to take steps to remove mold yourself. You can find steps for removing smaller mold patches at EPA.gov. If you have other damage to your home, like from a burst water pipe, or an extensive amount of mold, you may find paying your insurance deductible is a small price compared to the total bill for cleanup.
Home Insurance: Filing a Claim
Follow your insurance company’s policy for filing a claim. But here is a general outline of what’s typically involved.
Steps to File a Claim
- Stop any ongoing damage. Call in professionals immediately to stop any moisture source and prevent further damage. Insurance companies expect homeowners to take reasonable action to mitigate damage, even when filing a claim.
- Review your policy. Check which situations are typically covered by your insurance policy and if this event likely applies.
- Document any damages. Take photos and videos of the mold, showing the location and how extensive it is.
- Assess the cause. Most standard insurance policies cover mold damage only if it was caused by a peril or a sudden event, like a burst water pipe. Consider hiring a professional mold inspector or assessor to identify the cause, which can then be included as evidence in your claim.
- Notify your adjuster immediately. File claims promptly, as soon as the incident of damage occurs. Complete forms thoroughly and accurately and provide as much detail as possible about the damage.
- Follow up. Ask your adjuster about estimated timelines for response after filing a claim. Many companies now have online portals to keep tabs on a claim’s status. Document all communications you have with your insurance company regarding the claim, including dates, times, and the person you spoke with.
What to Do If Your Claim Is Denied
An investigating adjuster in the insurance company will determine the merits of your claim. Often, if a claim is denied, “it’s likely due to an uncovered cause or negligence” from homeowner maintenance, Piotrowski says. “Appeals may not be possible in such cases. Providing clear documentation of the incident’s cause when filing can reduce misunderstandings.” Claims also may be denied because of missing or incorrect information.
If your claim is denied, consider these steps:
- File an appeal. Ask the insurance company to review your claim again. Make sure nothing was missing from your original claim that may have resulted in the denial. Be sure your appeal addresses any reasoning specified in your denial letter and include supporting documents and evidence.
- Offer additional evidence. Contact a professional mold remediation specialist to evaluate the mold, determine the cause and extent of damages, and estimate costs for removal. Use these supplemental findings in your appeal.
- Contact an attorney. Seek legal advice from an attorney who specializes in insurance denials.
Prevent Mold in Your Home
Avoid having to file a claim by taking steps to prevent mold in your home. “Proactive maintenance can help prevent mold issues, as it helps identify and address potential risks before they become costly problems,” Piotrowski says. “Mold prevention is also helpful for maintaining home health.”
The key to mold control is moisture control, according to the EPA’s “Mold, Moisture and Your Home” guide. Homeowners can take a variety of mold prevention steps, such as:
- Fix plumbing leaks and water issues promptly.
- Dry water-covered items immediately: Water-damaged areas and items must be dried within 24 to 48 hours to prevent mold growth.
- Clean and repair roof gutters regularly.
- Ensure the ground slopes away from your home’s foundation so that water doesn’t enter or collect around the foundation.
- Keep air conditioning drip pans clean and drain lines unobstructed and flowing properly.
- Keep indoor humidity low. The EPA advises keeping indoor humidity below 60% relative humidity (ideally between 30% and 50%).
- Watch for condensation or moisture collecting on windows, walls, or pipes. This could be a sign humidity is too high in the home.
- Vent appliances that produce moisture — like clothes dryers, stoves, and kerosene heaters — to the outside of the home when possible.
- Use air conditioners and/or dehumidifiers when needed. (Consider placing dehumidifiers in high-humidity areas like bathrooms and basements.)
- Consider smart home devices that track humidity, temperature, and water leaks to alert you to potential mold risks early.
- Run the bathroom fan or open the window when showering to vent the area. Also, use exhaust fans or open windows whenever cooking, running the dishwasher, etc.
Related: 10 Mold Prevention Tips for Your Home
Professional Mold Remediation
Mold can be costly to remove and cause health problems if you inhale the spores during removal. You may want to leave it to the professionals, particularly when mold is extensive. The EPA defines that as greater than a three-foot-by-three-foot patch.
Mold remediation services can vary depending on the type of mold and the amount present. On average, the cost of professional removal is $2,363, but it often ranges from $373 to $7,000, according to 2024 data from Angi. Those costs can drastically rise, especially if remediation requires the removal of walls or entire flooring.
Mold remediation services include professional assessment, identifying the extent and type of mold, containment and ensuring barriers are placed in the home to prevent mold spores from spreading during remediation, and removal and cleanup. View more of a cost breakdown and what’s involved in working with professional mold remediation firms.
Can I Just Clean It Myself?
If you spot mold that is less than 10 square feet — or less than a three-foot-by-three-foot patch — you can likely clean it yourself, according to the EPA. For anything larger, the EPA recommends calling in the professionals. For DIY solutions, scrub mold off hard surfaces using just detergent and water. Then, dry the area completely. Also, take precautions to limit your exposure to mold spores, such as by wearing an N-95 respirator, gloves, and goggles. Find more tips at EPA.gov.
Homeowners Insurance: Mold Coverage FAQs
Here are a few commonly asked questions regarding insurance coverage for mold issues.
Is mold coverage typically included in a standard homeowners policy?
Mold is only typically covered by a standard homeowners insurance policy if it’s caused by a “peril,” or sudden, accidental event. Examples might be a burst water pipe or an appliance malfunction, Piotrowski says. Most insurance companies won’t cover damages caused by homeowner negligence or lack of home maintenance, such as a moldy shower. Insurance companies will review claims on a case-by-case basis. Homeowners should review their policies carefully to see what’s included.
Does my homeowners insurance cover replacing damage from mold?
“Generally, insurance may cover remediation rather than replacement [of items], depending on policy terms,” Piotrowski says. Homeowners may seek additional protection against possible damages and events that could result in mold. Protection might be add-on riders to their standard insurance policy (for example, endorsements for hidden water damage, flood insurance, or sewer backup). “Before signing or renewing a policy, it’s wise to research which mold scenarios are included,” Piotrowski says. Also, “this way you’ll know what to expect if a claim becomes necessary, and you’ll be prepared for any deductible or costs involved.”
What are some signs I may have mold damage in my home?
Some signs of mold are clearly visible, like black, green, or white patches on household surfaces. Other signs may be more subtle or even hidden. The only sign may be the smell — a musty scent that may occur in high humidity areas like in bathrooms or basements. Homeowners might experience health issues, like ongoing allergy symptoms, sneezing, watery eyes, skin rashes, or a persistent cough. Other signs could be spotting excessive moisture or condensation on windows or other surfaces (a sign of high humidity in the home that could lead to mold growth), peeling paint or wallpaper, or discolored spots on walls or ceilings. Homeowners can test their homes for mold. Mold testing kits are available at hardware stores, and require collecting samples around the home and sending them for analysis. Or, owners can contact a professional mold abatement specialist for further testing.