Does Homeowners Insurance Cover Mold? What to Know After a Leak

The short answer

Most homeowners policies don’t cover mold on its own. Insurers usually see mold as a maintenance problem. The Washington State Office of the Insurance Commissioner puts it simply: most standard policies don’t cover damage caused by mold, and insurers generally consider mold a home maintenance issue.

But there’s an important exception. If the mold grew because of a sudden water problem your policy covers, it may be covered too. The Texas Department of Insurance explains that most home policies cover sudden and accidental water damage, like a burst pipe, a toilet overflow, or a broken washer hose. If mold grows on an item damaged that way, it says the mold damage would be covered.

In a 2024 report from CNBC, a spokesperson for the Insurance Information Institute said mold from a sudden, covered problem, like a bursting pipe or a water heater flooding a basement, may be covered. Mold that has been around for several weeks or longer likely won’t be. Mold that comes from neglect won’t be covered.

What’s often covered and what usually isn’t

Here’s the general picture. Think about where the water came from and how long it was there.

Flooding is its own category. The National Association of Insurance Commissioners notes that homeowners policies don’t cover flood damage. The Texas Department of Insurance adds that mold from a flood isn’t covered by a home policy for the same reason.

If you have flood insurance through the National Flood Insurance Program, mold is limited there, too. In one published appeal decision, FEMA explained that the standard flood policy excludes mold damage caused mainly by things within the policyholder’s control, such as failing to inspect and maintain the property after the floodwaters go down.

One more thing to know: even when the water damage is covered, the mold cleanup may be treated differently. The Texas Department of Insurance says most home policies don’t include mold cleanup and testing after a damaged item is removed. It adds that your insurer may let you add coverage for cleanup after a covered loss.

Many policies cap mold coverage

Even when mold is covered, there’s often a ceiling on how much the policy will pay for it. This is called a mold limit or sublimit. It’s separate from, and usually much smaller than, your main coverage for the house.

These limits became common in the early 2000s. The CNBC report says mold limits and exclusions became the industry norm after several high-profile lawsuits. It cites a 2003 Insurance Information Institute paper that said about 40 state insurance departments had approved mold exclusions or limits.

How big is the limit? There’s no single standard amount. It varies by company, by state, and by policy, so look at your own. For a sense of scale, the 2024 CNBC report found that one large insurer included $2,500 for mold cleanup and $2,000 for extra living costs in most states, and another capped mold damage from covered events at $10,000. A homeowner in the story had a policy with mold coverage of up to $15,000. Those were the terms the companies described at the time, not what your policy will say.

If your mold coverage is low or missing, ask about an endorsement. The Washington insurance commissioner’s office says you may be able to buy mold coverage by adding one to your policy.

How to check your own policy

You don’t need to read every page. Start here:

• Find your declarations page. It’s near the front of your policy. United Policyholders, a nonprofit for insurance consumers, notes that it lists the limit for each coverage.
• Look for a list of endorsements. A mold or “fungi” endorsement may be listed by name or form number.
• Search the policy for key words. Mold language often uses words like “mold,” “fungi” or “fungus,” “wet or dry rot,” and “bacteria.” A 2002 Illinois Department of Insurance bulletin describes insurers filing language for “mold, fungi, wet rot, dry rot, bacteria and related causes of loss.”
• Read the exclusions section. Look for wording about wear and tear, maintenance, repeated leaks, and flood.
• Ask your agent directly. “Is mold from a covered water loss covered? What’s the limit? Does it include cleanup and testing?”

Why speed matters so much

Mold grows fast. The Texas Department of Insurance says mold can start growing within a day after a leak. The EPA says it’s important to dry water-damaged areas and items within 24 to 48 hours to prevent mold growth. The CDC gives the same 24-to-48-hour window after a flood.

Speed matters for your claim, too. Many policies expect you to protect your home from more damage after a loss. United Policyholders advises taking any needed emergency steps to protect the building and your belongings. And the longer mold sits, the harder it can be to show that it came from a sudden event and not a slow, long-term problem.

Reporting matters as well. The Texas Department of Insurance says to tell your insurance company as soon as possible. For water damage that was hidden from view, it says you usually must report it within days after you first see it. The NAIC also says to contact your agent or company as soon as possible.

What to do after you find mold, step by step

1. 1

   Stop the moisture

   Shut off the water to a leaking fixture, or close the main water valve. If a roof is leaking, a tarp can help, but only if you can put it up safely. The EPA says that if you clean up mold but don’t fix the water problem, the mold will most likely come back.

2. 2

   Document everything before cleanup

   Take wide photos of each room and close-ups of the mold and the leak. A slow video walk-through works well. United Policyholders suggests photographing, filming, and listing all damaged property, and recording the date.

3. 3

   Report it to your insurer

   Call your insurer or agent and say you have water damage with mold. Then follow up in writing, like an email, so there’s a record. Write down your claim number and every person you talk to.

4. 4

   Limit the damage

   Dry what you can. Move belongings out of wet areas. Make temporary repairs only, and save receipts for materials.

5. 5

   Hold on to moldy items

   It’s tempting to throw everything out. Wait until your adjuster says it’s okay. The Texas Department of Insurance says not to throw away damaged items until your adjuster has seen them, and United Policyholders says you may need to keep mold-damaged items until a lab can test them. Bag them and set them aside, away from living areas.

6. 6

   Get a written estimate

   A water damage or mold remediation company can tell you what needs to be removed and dried. Ask for the estimate in writing, and share it with your adjuster.

Clean it yourself or call a pro?

Small spots are often a DIY job. The EPA says that if the moldy area is less than about 10 square feet, you can usually handle the cleanup yourself. It suggests scrubbing hard surfaces with detergent and water, then drying them completely.

If you do it yourself, protect yourself. The EPA suggests an N-95 respirator, long gloves, and goggles without vent holes. It also says porous things like ceiling tiles and carpet may need to be thrown away if they get moldy.

Call a professional when:

• The mold covers more than about 10 square feet, or there was a lot of water damage.
• The water was sewage or other dirty water.
• You think mold is inside your heating or cooling system.
• Someone in the home has asthma, allergies, lung disease, or a weak immune system.
• The mold is hidden behind walls, under floors, or in a crawl space.

The CDC notes that people with asthma or mold allergies may have severe reactions, and people with weak immune systems or long-term lung disease can get lung infections from mold. If you have health concerns, the EPA suggests talking with a health professional before you start.

What about testing? The CDC doesn’t recommend mold testing. It says the best thing you can do is safely remove the mold and keep it from coming back. For a claim, though, your insurer or a specialist may still want samples, so ask before you throw things away. For tips on vetting a company, see how to choose a water damage company in Boise.

If your mold claim is denied

A denial can feel like a door slamming. It isn’t always the end. Here are common next steps. This is general information, not legal advice.

• Get the reason in writing. In Idaho, the unfair claims settlement law names failing to promptly explain a denial, based on the policy, as an unfair practice when an insurer does it on purpose or as a regular habit. So asking for the reason in writing is a fair request.
• Compare it to your policy. Find the exact section the insurer points to. Does it say the mold came from a slow leak? Do your photos, dates, or a plumber’s report show it was sudden?
• Ask the insurer to reconsider. Send a letter with new facts, like a plumber’s note on what failed and when. United Policyholders advises documenting any dispute fully in writing.
• Contact the Idaho Department of Insurance. You can reach its Consumer Affairs team at 208-334-4319 or the consumer hotline at 1-800-721-3272. You can also file a complaint online. The department says it helps consumers resolve disputes with insurance companies.
• Consider outside help. A public adjuster works for you, not the insurer, and is usually paid a share of the settlement, as the Maryland Insurance Administration explains. For larger disputes, some people talk with an attorney who handles insurance claims.

If the insurer pays but the amount falls short of the cleanup bill, our guide on what to do when the restoration bill is higher than insurance pays may help.

Mold in a dry place like Boise

It’s easy to think mold isn’t a big worry here. The National Weather Service in Boise describes the Treasure Valley as semi-arid. The Boise airport averages just over 11 inches of rain and melted snow a year, and the warm season is mostly dry.

But mold doesn’t need a wet climate. It needs a wet spot. Dry outdoor air doesn’t help much when water is trapped behind a wall, under a floor, or in a crawl space with little airflow. A slow drip under a sink can stay wet for months. That kind of hidden, long-term leak is also the kind insurers often call gradual, which is why checking hidden spots matters.

If your home has a crawl space or a basement, check it after any leak, and a few times a year. Look for a musty smell, damp insulation, standing water, or dark stains on wood. Our guide to a burst pipe in a crawl space walks through what to do if you find water down there.

Preventing mold next time

The best mold claim is the one you never need to file. A few habits go a long way:

• Fix leaks fast. The EPA says to fix plumbing leaks and other water problems as soon as possible, and dry items completely.
• Watch the humidity. The EPA suggests keeping indoor humidity below 60 percent, ideally between 30 and 50 percent. An inexpensive humidity meter can tell you where you stand.
• Check under sinks and around appliances. NC State Extension suggests checking for leaks around sinks, tubs, refrigerators, dishwashers, showers, the water heater, and washing machine lines.
• Look after the crawl space. The same NC State checklist recommends a plastic vapor barrier over crawl space soil and keeping the space sealed and dry.
• Send water away from the house. NC State also suggests keeping gutters clear, extending downspouts 6 to 10 feet from the foundation, and making sure the ground slopes away from the house.
• Use your fans. Run bathroom and kitchen exhaust fans that vent outside, especially during showers and cooking.
• Review your policy once a year. Know your mold limit before you need it, and ask about an endorsement if it’s low.

Frequently asked questions