Insurance is meant to protect you from losses that are outside of your control, which is why it does not always cover mold damage in your home. Here’s what you need to know about your homeowners insurance and whether or not it covers mold. Keep in mind, individual policies vary, so you should refer to your own homeowners insurance policy to find out what coverage you have.
Insurance companies are reluctant to cover anything that is the homeowner’s fault. Homeowners are expected to maintain their own properties in a manner that reduces risk. That is why your homeowners policy will probably not cover mold damage caused by humidity or neglect. You are expected to respond to leaks and damages on the property within a reasonable time frame in order to prevent mold infestations.
Therefore, if you have mold growing on your walls due to a leak under your sink, you probably aren’t covered. If it was a sudden pipe burst that created the situation you may have some coverage, but long-term mold growth is something for which you are liable.
Insurance lists covered perils in its policies. These almost always include fire, lightning, wind or hail, explosion, riot, aircraft, vandalism, volcanic eruption, falling objects, smoke, weight of precipitation, and freezing. If damage from a covered peril resulted in mold, you will probably have some coverage.
There are limits to mold coverage, and they vary by policy. This is because mold remediation can cost thousands of dollars depending on the extent of the damage. Typical limits range from $1,000 to $10,000. Refer to your policy for your limits.
Many people mistakenly believe their homeowners insurance provides coverage for floods, and this is almost always not the case. Flood insurance is an entirely separate policy. Even if you have flood insurance, if the damage to your home is caused by the movement of earth, it may be excluded in your flood insurance. To get this covered, you may have to purchase landslide insurance. The nuances in each insurance policy make it very important to evaluate your risks and understand your policy exclusions.
The answer to the question about whether or not your homeowners policy covers mold damage is that it might. It is important to understand that properly maintaining your home will reduce many mold risks, and you should evaluate risks outside of your control to make sure you have the necessary insurance coverage.