What to do when you discover Mold Damage in your Home or Business?


Many people assume that when they have homeowners insurance or commercial business insurance coverage that they are covered for any type of damage to their home.

It is important to read your insurance policy to see what if mold damage is covered.

Many homeowners and commercial business insurance policyholders do not realize that most insurance companies will not cover constant or repeated water damage for a period of 14 days or more.

Mold can create significant problems for the insured homeowner or commercial business insurance policyholder.

Does Homeowners Insurance Cover Mold?

Homeowners and commercial business insurance policies are designed to cover you against various types of damage, but you may be wondering whether that includes mold. It’s a good question to ask, particularly if you’re purchasing an older home and want to avoid any potentially costly surprises.

The answer is – It depends on what causes the mold to see if you have a covered insurance damage claim. The answer isn’t always obvious. It is important to read your insurance policy before you have mold damage.

Ensure that you secure insurance coverage by your homeowners or commercial business insurance policy.


  • Mold coverage isn’t guaranteed by your homeowners or commercial business insurance policy.
  • Typically, mold damage is only covered in your 9insurance policy if it’s related to a covered peril such as water damage from a leak.
  • It is important for insured homeowners or commercial business insurance policyholders to note that Mold damage caused by flooding would need to be covered by a separate flood insurance policy.

Covered Perils and Mold Insurance

Homeowners insurance policies spell out a list of “covered perils,” meaning instances of damage to the home in which you’re eligible to file a claim. Usually, The main cause of mold damage is from water seeping into the structure of your home or business.

Make sure you understand to which water-related covered perils are included in your insurance policy.

For example, your insurance policy may cover you if mold damage results from any of the following:

  • Water leaks associated with a malfunctioning appliance such as a leak from a dishwasher or a hot water heater
  • Water damage caused by a burst hot water heater
  • Water damage caused by firefighters extinguishing a fire in your home

In these instances mold would be “resulting damage” from a covered peril in your insurance policy.

It’s important to distinguish between resulting mold damage and initial damage.

For example, if your dishwasher breaks and a leak causes mold to form in the walls, then your insurance policy might pay for the walls to be repaired and the mold damage to be removed but the insurance company will not pay to replace your dishwasher. not for the replacement of the hot water heater.

It’s important to note that the amount your insurance policy may pay for mold repair and mold removal and remediation might not cover all of the resulting damage. Higher coverage limits may be available, but if you’re unsure about what’s covered by your insurance policy, talk to your insurance agent about your insurance policy.

When taking out homeowners or commercial business insurance, pay close attention to insurance coverage limits.

Denied Insurance Claim
You can appeal your mold damage related insurance claim denial

What to Do If Your Mold Damage Insurance Claim Is Denied:

If your homeowner’s or commercial business insurance company denies your mold claim, you may want to hire a public insurance adjuster. Public insurance adjusters protect the insurance policyholder and fight for you against insurance companies. A qualified Public Adjuster will assist in appealing the denial from your insurance company.

Consider hiring a Public Insurance Adjuster to avoid insurance claim submission mistakes and to ideally speed up the process for your insurance claim.

Public Adjusters

The insurance adjuster that is sent by your insurance company is sent to represent the best interests of your insurance company – NOT you, the insurance policyholder.

If you have further questions or would like to contact us for a free insurance policy and or insurance claim review, call 1 (800) 446-4496 for immediate assistance. Lightman + Fields Public Insurance Adjusters INC has been serving residential homeowners insurance policyholders and commercial business insurance policyholders since 1985.

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