Homeowners insurance provides coverage for mold damage. However, it does not cover every instance of mold damage. This is also true for condominium-owner and dwelling-fire policies. Coverage depends on the cause of loss and circumstances that resulted in the mold.  When coverage does apply, standard home policies typically provide coverage, under the Limited Fungi, Wet or Dry Rot, or Bacteria Coverage endorsement (see sample), of up to $10,000 for property damage and $50,000 for liability if someone other than a household member becomes sick because of the mold.

However, the challenge is that mold can grow in places where you can’t immediately identify it, which can quickly cause the cost of remediation and repairs to exceed the fundamental limits. We recommend purchasing expanded coverage of up to $50,000 for property damage and $100,000 for liability, which is generally available from most carriers if you are eligible.

The Problem

Mold can grow wherever moisture is present.  Outdoors are typically not a problem, but mold growing in a home can create significant health problems and damage to your residence and possessions unless remedied promptly and adequately. You can usually see or smell a mold problem. Most molds produce musty odors, often the first sign that you have an issue. Mold frequently appears as discolored, sometimes fuzzy, or slimy patches that grow as they grow. If mold grows in your home, the key is to treat the problem and fix the cause immediately before the infestation worsens or causes permanent damage.

When Homeowners Insurance Covers Mold Damage

Coverage for mold damage depends on the source of the mold. If mold is caused by a “covered peril,” i.e., a loss situation covered by your policy, your insurance should typically cover the damage. Accidental water damage is a typical cause.

Situation examples of when resulting mold damage may be covered

  • Washer or dishwasher malfunctions, causing a leak
  • Water heater leak or burst
  • Frozen or burst pipe
  • Water damage caused by extinguishing a fire.

When home insurance does not cover mold damage

Generally, home insurance doesn’t cover mold damage caused by neglect or a lack of regular upkeep and maintenance. If your insurance company deems your mold damage preventable, you will be responsible for paying to make repairs.

Situation examples of when resulting mold damage may not be covered

  • Improperly maintained sealing around the base of a toilet or shower
  • Poorly sealed doors or windows.
  • Poor ventilation in a humid room such as a bathroom or kitchen
  • Poor ventilation of the attic
  • Leaky faucet or pipe that was not promptly fixed
  • Poorly maintained or broken gutters
  • Flooding is generally excluded by home insurance and requires separate flood insurance; however, even flood insurance has limitations and may not cover mold damage

Preventing mold growth in your home

While insurance can help protect you financially from situations beyond your control, the key is to stop mold before it starts. To prevent mold, you need to manage moisture in the areas of your home that tend to be most prone to excess humidity, condensation, or water.

Here are a few tips:

  • Clean up water leaks and spills within a day or two of occurring
  • Clean and repair roof gutters regularly
  • Direct rainwater away from your home.
  • Inspect pipes, faucets, and hoses periodically and fix leaks immediately
  • Install and use exhaust fans or open windows to improve bathroom and kitchen ventilation
  • Vent clothes dryers, stoves, and exhaust fans to the outside when possible
  • Ensure air conditioning drip pans are clean and drain lines are flowing properly
  • Avoid using carpet in areas such as bathrooms and basements
  • Use dehumidifiers and air conditioners to reduce humidity; try to keep humidity below 60%.

If you have concerns about how you are protected in case of fungi, wet or dry rot, or bacteria damage, please review your policy carefully and Contact Us to review the details.

Read Other Blog Posts

Candle on table

Candle Safety Considerations

Candles provide a warm ambiance for an intimate dinner, a sparkling decoration for a birthday cake or a nice scent for your home. Ambiance aside, candles can be a fire hazard if they are left unattended or placed where they can start other objects on fire. If you enjoy candles, be sure to follow these tips to use them safely.
Introducing the Murphy Insurance Condominium Owner’s Manual Your Guide to Preventing Costly Condo Repairs & Damages SMM

Introducing the Murphy Insurance Condominium Owner’s Manual: Your Guide to Preventing Costly Condo Repairs & Damages

Murphy Insurance Agency has launched a new Condominium Owner's Manual designed to help you prevent costly home repairs and avoid common insurance claims. Backed by decades of real-world experience, this practical guide provides seasonal tips, safety advice, and a comprehensive maintenance checklist to protect your home—and your wallet—all year round. Download your copy today!
Deer Sign

Road Safety and Wildlife: What Drivers Need to Know

Every year, countless accidents occur because drivers aren't prepared for unexpected encounters with animals on the road. Whether it's a deer darting across a rural highway or a stray dog wandering into city traffic, these moments can be dangerous for both humans and animals. Staying alert and understanding how to respond in these situations can make a critical difference in preventing harm and keeping roads safer for everyone.
Quest for the Best 2025

We Did It Again! 5-Time Gold Winners in Quest for the Best

We’re proud to announce we’ve won Gold in MyFM 101.3’s Quest for the Best – Insurance Category for the 5th year in a row! Thank you to everyone who voted and continues to support us. If you're a client, we’re grateful for your trust. If you’re looking for a second opinion, we’d love the chance to earn your business.
Happy driver

The Benefits of Raising Your Limits

An overwhelming majority of states require individuals to carry insurance in order to operate a vehicle. While meeting these minimum limits may be enough to get you on the road, they may be inadequate if you are involved in a serious accident. For better protection, you may want to consider raising your limits to secure proper protection.
Murphy Insurance Team

27 Reasons to Work with Murphy Insurance Agency

For more than 88 years, Murphy Insurance Agency has been a trusted partner for families, individuals, and businesses across Massachusetts. As a family-owned and independent agency, we prioritize relationships over transactions, offering guidance and support tailored to your needs. With access to more than 25 top-rated carriers, we deliver personalized solutions, competitive options, and peace of mind. Discover 27 reasons why thousands have chosen Murphy Insurance to protect what matters most.
Personal Article Floater

What Is a Personal Article Floater—and Do You Need One?

Many people assume that their home or renters insurance covers all their personal belongings—but it's not always that simple. While these policies do offer significant protection, there are usually limits, especially when it comes to high-value or one-of-a-kind items. If you own something valuable, rare, or that you often take with you, you may want to consider adding a personal article floater to your coverage.
Home Fall Prep for Winter

Fall Into Home Prep: Smart Projects to Help You Avoid Winter Insurance Claims

Fall is the perfect time to tackle home maintenance projects before winter sets in. Use our seasonal checklist to protect your home, prevent costly damage, and keep everything running smoothly—inside and out.
Living room

Renting Out Your Home? Here’s What You Need to Know About Liability and Insurance

Renting out your home—whether short-term or long-term—can provide extra income but also introduces legal and insurance risks. Before listing your property, it's essential to research local laws, use a clear rental agreement, screen tenants carefully, and ensure your insurance policy provides the right coverage. Taking steps like securing valuables, documenting your home’s condition, and staying accessible can help protect your property and minimize potential issues.

Visit Our Personal Insurance Page

Personal Insurance

Life is an ever-changing journey, and it deserves a thoughtful, comprehensive plan to protect the things and people that matter most. Our dedicated team at Murphy Insurance is here to assist you in creating that plan. With a wide range of product options at our disposal, we ensure that your plan is tailored precisely to your requirements. Our commitment to providing clear, intelligent guidance to help you achieve true peace of mind. Learn more about our personal insurance portfolio.