Does Homeowner's Insurance Cover Mold?


Quick Answer

According to Gwen Moran for HouseLogic, mold damage is not usually included in basic home insurance policies. Sometimes, insurance companies still cover the cost of mold damage, as long as it is caused by another issue that preceded or caused the mold damage. If mold damage occurs as a result of the homeowner's neglect, insurance companies are highly unlikely to reimburse the cost of remediation.

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Does Homeowner's Insurance Cover Mold?
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Full Answer

Moran explains that it is possible to request mold insurance as an addition to a basic home insurance policy. The regulations vary from state to state, but policies generally cover this topic under water damage legalese. Even this coverage can leave homeowners exposed if they do not also carry adequate flood insurance. The technicalities revolve primarily around the originating source of the damage. According to Moran, the average mold damage claim was estimated to range between $15,000 and $30,000, as of 2010. However, most policies only cover between $1,000 and $10,000 in repairs.

Some insurance companies offer what is called a "mold rider" to cover increased risks. Rates vary according to a homeowner's geographical location and the age of the home. Older homes are more susceptible to moisture complications, as are homes that sit in humid climates. If an insurance company does not agree to sell a mold rider as an add-on to an existing policy, there are third-party companies that are willing to sell stand-alone mold policies, but they can be quite expensive, Moran warns.

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