How is mold damage covered under a Homeowners Policy?

Mold damage under a Homeowners Policy is primarily covered when it results from a covered water loss. This means that if mold growth occurs due to an incident that is explicitly included in the policy, such as sudden and accidental water damage from a burst pipe, the policy would generally provide coverage for the mold that develops as a direct result of that water loss.

However, general mold damage that arises from other sources, such as long-term moisture problems, is often excluded from coverage. This ensures that homeowners are protected against unexpected, sudden incidents but do not face undue financial liability for mold issues that stem from neglect or lack of maintenance.

The distinction is important because it guides homeowners in understanding the need to act promptly in addressing water issues to prevent mold growth, as well as ensuring proper maintenance of their properties to avert situations that could lead to mold development that wouldn't be covered by their insurance.