Does Homeowners Insurance Cover Mold Remediation?

Homeowners insurance usually covers mold remediation only when the mold was caused by something your policy covers, such as a burst pipe or a sudden appliance leak. Mold from a slow leak, high humidity, poor maintenance or a flood is usually not covered by a standard homeowners policy, and many policies limit how much they'll pay for mold.

Every policy is different. The answer for your home is in your policy's exclusions, any mold endorsement, and your declarations page.

When is mold covered by homeowners insurance?

The key question is what caused the mold.

The Insurance Information Institute (Triple-I) ↗ says mold is generally not covered by standard homeowners policies because it's treated as a maintenance issue. But if mold growth is the direct result of a covered peril, such as a burst pipe, "the cost of eliminating the mold may be covered."

The Texas Department of Insurance (TDI) ↗ puts it this way: "If mold develops on a damaged item, it would be covered." TDI's homeowners guide ↗ says policies won't cover mold removal "except to repair damage caused by a covered risk."

Mold that is often covered

• Mold that grows after a sudden, accidental water leak, like a burst pipe or a broken washing machine hose
• Mold on items damaged by a covered loss
• Mold from a flood, but only under a flood policy. Triple-I says federal flood insurance may cover mold and mildew damage if it is directly attributable to a flood (Triple-I ↗).

Mold that usually is not covered

• Gradual leaks. TDI says most home policies don't cover water damage from gradual leaks or seepage, "and that includes damage from mold" (TDI ↗).
• Flood-caused mold under a homeowners policy. TDI says mold from a flood isn't covered because home policies don't cover floods. You'd need a separate flood policy.
• Ongoing dampness or upkeep problems. Triple-I says mold is generally treated as a home maintenance issue, which is why it's usually not covered.
• Mold that spread because nobody acted. Insurers expect you to stop the water and dry things out. TDI says mold can start growing within a day after a leak.

The NAIC ↗, the national group of state insurance regulators, says homeowners policies "often exclude covering the cost of damage from mold."

Mold limits and exclusions in your policy

Even when mold is covered, the payout may be capped. These caps are often called mold sublimits.

• In Florida, the Department of Financial Services says a mold endorsement can let you raise the mold damage coverage limit to $25,000 or $50,000, and some insurers may offer other limits (Florida DFS ↗). Florida also describes a separate mold liability endorsement for claims from other people.
• TDI lists "mold removal" among common endorsements you can add in Texas, and says your insurer may let you add coverage for cleanup caused by a covered loss (TDI home guide ↗; TDI ↗).
• TDI notes that most home policies don't include mold cleanup and testing after a damaged item is removed.

Where to look in your policy:

1. Declarations page: lists your coverages, limits and any endorsements.
2. Exclusions section: look for any mention of mold and of gradual leaks or seepage.
3. Endorsements: these can add, limit or remove mold coverage. United Policyholders ↗ recommends reviewing any endorsements added to the policy form.

If you can't tell what applies, ask your agent or insurer to point to the exact policy wording in writing.

Texas: a remediation certificate can protect you later

Texas has a rule that helps after mold is properly fixed. Under Texas Insurance Code sec. 544.303 ↗, an insurer may not make an underwriting decision on a home based on previous mold damage or a mold claim if the property was remediated and either has a certificate of mold remediation showing the underlying cause was fixed, or an independent inspection found no evidence of mold damage. TDI tells Texans that mold professionals must provide a certificate that the mold was removed and that the professional should have a state license (TDI ↗). Keep that certificate. See our Texas page.

What to do first: safety, then stop the water

The EPA ↗ says molds can cause allergic reactions in sensitive people and asthma attacks in people with asthma who are allergic to mold. EPA says to consult a health professional before cleanup if you have health concerns, and not to run your HVAC system if you suspect it has mold. If water is near outlets or electrical panels, stay out and call the utility or an electrician.

Then limit the damage. TDI recommends that you:

• Stop the water flow or leak as soon as you can
• Remove standing water and start drying the area
• Move wet items to a dry room and pull up wet carpets and rugs
• Use a professional service if you can't dry the area yourself (TDI ↗)

EPA says drying water-damaged areas and items within 24 to 48 hours helps prevent mold growth (EPA ↗).

How to document a mold claim

Good records help show the mold came from a covered event.

• Report quickly. TDI says to tell your insurer as soon as possible, and that you usually must report hidden water damage within days after you first see it.
• Photograph and video everything before cleanup, with dates. United Policyholders recommends photographing, videotaping and inventorying all damaged property, plus documenting the water source and the extent of visible mold (United Policyholders ↗).
• Get the cause in writing. Ask the plumber or roofer for a written note on what failed, when and why. This is often the deciding fact.
• Don't make permanent repairs until your insurer sees the damage (TDI ↗).
• Keep samples and damaged items if asked. United Policyholders notes you may need to keep moldy items until they can be sampled by a lab.
• Keep every invoice, including drying, testing and remediation bills. The NAIC ↗ says to keep all paperwork.

Hire a properly licensed company where your state requires it. Our guide on whether a restoration company needs a license explains the rules in Texas, Florida, New York and Louisiana. For price expectations, see mold remediation cost.

What to do if your mold claim is denied

1. Get the denial in writing. The NAIC says to ask for any denial in writing (NAIC ↗).
2. Ask which policy language the insurer relied on, such as a gradual-leak or mold exclusion, or a sublimit.
3. Respond with evidence. A plumber's report on a sudden failure, dated photos and moisture readings can matter.
4. Watch deadlines. United Policyholders warns many policies have a shorter contractual time limit to sue, often one or two years.
5. Contact your state insurance department if you can't resolve it. In Texas, TDI's helpline is 800-252-3439 (TDI ↗). Florida residents can use the DFS consumer help portal ↗. New Yorkers can file with the Department of Financial Services ↗.
6. Get professional help for big disputes. For legal questions about your policy, talk to an attorney. Our sister site explains denied insurance claims ↗ and mold insurance claims ↗, including when a public adjuster may help.

If you need the mold cleaned up now: Get matched with restoration companies near you, or browse companies in your area.

Frequently asked questions

Does homeowners insurance cover mold from a leaking pipe?

It depends on how the leak happened. A sudden burst is often covered, along with resulting mold (Triple-I ↗). A slow, ongoing leak usually is not (TDI ↗).

Does flood insurance cover mold?

Triple-I says federal flood insurance may cover mold and mildew damage if it is directly attributable to a flood. A standard homeowners policy doesn't cover flood or flood-caused mold (TDI ↗).

How much will insurance pay for mold?

It depends on your policy's mold limit. In Florida, for example, a mold endorsement can raise the limit to $25,000 or $50,000 (Florida DFS ↗). Check your declarations page.

Does insurance pay for mold testing?

Often not on its own. TDI says most home policies don't include mold cleanup and testing after a damaged item is removed, though you may be able to add coverage (TDI ↗).

Can I buy mold coverage?

Many insurers sell mold endorsements. TDI lists mold removal as a common add-on (TDI home guide ↗), and the NAIC says homeowners policies often exclude mold. Ask your agent what's available.

Will a past mold claim make insurance harder to get?

In Texas, insurers can't base underwriting decisions on prior mold damage if it was remediated and you have a qualifying certificate or a clean independent inspection (Tex. Ins. Code 544.303 ↗). Rules differ in other states.