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Is Mold Covered by Insurance?

Mold Damage around Window Seal

Mold removal is an essential biohazard cleanup process as it eliminates the type of fungus that forms multicellular, thread-like structures. Even if molds are known to cause foodborne illnesses, with symptoms including nausea and diarrhea, it is an uncommon inclusion in homeowner’s insurance policies.

Do Insurance Policies Cover Mold Removal?

A standard homeowner’s insurance policy only considers mold removal as part of it when its growth results from moisture buildup due to issues like water damage. An insurance policy protects houses from water damage caused by sudden and accidental incidents, such as a burst pipe or an overflow resulting from a malfunctioning air conditioning unit. However, it doesn’t automatically include mold removal.

Suppose the resulting moisture connected to water damage issues causes the mold to develop. In that case, homeowners can file a claim for mold removal—including repairs for any property permanently damaged by it, all belonging to the insurance coverage.

How Much Do Insurance Policies Cover for Mold Removal?

Mold damage is not cheap—it costs between $15,000 to $30,000 for repairs. Therefore, insurance companies have enacted measures to reduce their risks upon a damage claim. Many insurance companies have reduced the amount they will pay for the damage, even caused by a covered peril. 

At most, insurance policies will only answer a maximum limit between $1,000 and $10,000 for mold remediation. An add-on option for mold removal is available for policyholders. However, for mold-prone states, such as Florida, adding it to a standard insurance policy can become a hefty price to pay.

When is Mold Removal Not Included in Insurance Policies?

Although excessive moisture is the primary cause of mold growth, other factors can be involved too. Home insurance companies will likely deny mold growth caused by homeowner’s neglect and lack of maintenance.

For example, a minor leak causes mold to spread throughout the surrounding area, and you try to file a claim for it weeks later. If that’s so, most insurance providers will assume that you failed to act immediately and deny coverage for it. 

Meanwhile, mold damage caused by regional floods is a peril excluded in insurance policies. However, if a separate flood insurance policy is on top of the standard insurance policy, then the coverage extends to any mold damage caused by a flood.

How to File a Claim for Mold Removal?

Filing a complaint is the first step in acquiring help from insurance institutions if a mold infestation occurs. However, a mold claim may coincide with another for a causal incident. For example, making a claim for a pipe burst that caused flooding in a house will immediately send a mold remediation team to prevent the fungus from spreading.

It is a better solution since it reduces damage and prevents homeowners from paying a deductible for two separate claims. For similar instances, it’s best to ask the insurance agent handling your account if the claim covers mold remediation and you require it immediately.

Before filing a claim, you must document the issues and the outcomes it has caused to support the claim by the time filing pushes through. Make sure that your records point to water damage as the main reason for a mold infestation to avoid paying for two separate deductibles. Keep in mind, however, that insurance companies are responsible for making sure the claims are accurate—do not be caught off guard if there is a bit of resistance.


You don’t always notice mold at home. However, as it hides from plain sight, it can grow anywhere without people knowing. Molds cause various disorders and illnesses, such as asthma, sore eyes, itchy skin, runny or blocked nose, sneezing, coughing, and sore throat. Getting them removed right away is the best way to protect the people living in your household.

AAA Restoration offers mold inspection, removal, and biohazard cleanup services for the residents of Salt Lake City and surrounding areas. We have a team of experts who provide mold removal, equipped with broad knowledge and an advanced set of tools to get to the source of mold infestation and eliminate the spores efficiently. Contact us today and book your appointment right away.