Is Mould Damage Covered by Home Insurance?
Mould damage is an all-too-common byproduct of water damage in the home.
If you’ve experienced water damage through a freak weather incident, a burst pipe in your home, or any other kind of unplanned event, then you’ll know that the initial cleanup usually isn’t the end of the matter.
Even with all of the right precautions and cleanup efforts in place, mould can still grow – particularly out of sight and become an issue over time.
If you’ve found yourself in this position, then you may be wondering if mould damage can be claimed on your home insurance.
In this article we explain when you can and cannot claim mould damage on your home insurance and the various factors that are considered by insurers when assessing claims for mould damage.
Does home insurance cover mould damage?
If you read any of the other articles on the first page of Google, then you’ll see the answer “no, mould damage is not covered by home insurance”.
But the truth is, the answer is a bit more nuanced than that.
Here’s a more accurate answer: it depends on what caused the mould.
Mould removal and mould damage remediation as a standalone service is not typically covered in a standard home insurance policy.
As a general rule of thumb, mould growth is considered to be preventable and therefore won’t be covered under your home insurance policy. For instance, if you have noticed mould in your home that has occurred over time or as a result of poor ventilation, then it is unlikely that you will be able to claim the cost of mould damage on your home insurance policy.
Mould damage may be covered if the mould was caused by damage that is covered in your home insurance policy.
We know from experience that many mould removal jobs stem from water damage that stems from events that are covered under your home insurance policy.
Whether it’s the result of a freak weather incident like a flood or water leak from your roof, or from a burst pipe or faulty appliance, many of the mould remediation jobs that we attend actually stem from events that are covered under a standard home insurance policy.
Most people think that fixing the damage that occurred directly from the event – i.e. damaged carpet, damage to your roof, damage to hard surfaces in your home, is the limit to what can be claimed. But this isn’t true. If you can prove to the insurance company that mould was not present before the event and was a direct outcome of the event, then there is a good chance that you will be able to claim the cost on your home insurance policy.
Examples of when mould damage may be covered by home insurance
Even if mould develops due to an event covered by your home insurance, such as flooding, a leaking roof, or burst pipes, it does not automatically mean the resulting mould damage will be covered by your policy.
Some examples of when mould damage may be covered by your home insurance policy, include:
Example 1
Event: Severe weather event such as flash flooding or cyclone
Damage: Flooding through the roof causes damage to the property
Scenario: The owners of the property are evacuated due to severe weather conditions. They are unable to return to their property for a period of 7 days. During that time, the original water damage has now caused black mould to grow on the walls and ceiling in the property.
Covered by insurance?: Yes, it is highly likely that the event would be covered by insurance. Because the owners were not able to take any steps to mitigate the subsequent mould damage, it is highly likely that the insurance would pay out for mould damage and the subsequent removal and restoration that would need to occur to return the house to a habitable state.
Example 2
Event: A pipe bursts in the bathroom while you are away on holiday
Damage: Water leaks through walls, flooring, and ceilings and causes damage to these surfaces.
Scenario: The owners of the property are away on holiday when the event occurs. The property is left in the state for two-weeks before they return and find the damage has occurred. By the time the damage is realised, extensive damage has occurred and black mould has now developed on walls and along the ceiling.
Covered by insurance?: In this scenario it would be likely that the mould damage and subsequent repairs would be covered by insurance. Because the owners were unable to take any preventative action, they were not able to prevent mould from growing and spreading and therefore the events should be covered under their home insurance policy.
Mould damage and home insurance coverage
It’s important to remember that both of these examples and all information in this article is to be used for indicative purposes only. Each home insurance policy and insurer is different.
To understand your coverage and eligibility, refer to your policy disclosure statement (PDS) and liaise with your insurer.
As a general rule, however, if the homeowner was unable to take any reasonable preventative action to mitigate or prevent the spread of mould that occurred from an event that is covered under their home insurance policy, then there is a good chance that the subsequent damage will be covered by the insurer.
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