Water and Mold Damage Insurance Claims
Mold coverage is one of the most disputed areas of homeowners insurance. The key distinction: sudden vs. gradual damage.
When Mold Is Covered
Mold that results from a covered water event (pipe burst, storm-related water intrusion) is generally covered. The mold must be a direct result of the sudden, accidental damage.
When Mold Is NOT Covered
Mold from gradual leaks, neglect, high humidity, or pre-existing conditions is typically excluded. Insurers look for evidence the problem was long-standing.
Act Fast to Prevent Denial
Mold can grow within 24-48 hours of water damage. Begin drying immediately, document everything, and notify your insurer. Delay gives the insurer grounds to argue you failed to mitigate.
Mold Coverage Limits
Many policies cap mold coverage at $5,000-$10,000. Remediation can cost far more. Check your policy for sublimits and consider a mold endorsement for higher limits.