Is mold damage covered under a standard homeowners policy?

Mold coverage under homeowners policies has narrowed significantly since major mold litigation in the early 2000s. Standard policies typically exclude mold but provide limited coverage when mold results from a covered water loss — for example, a burst pipe that soaks the wall, leading to mold growth before the wall could be properly dried. This 'resulting damage from a covered peril' provision is usually capped at a low limit ($5,000-$10,000) for both remediation and resulting damage. Broader mold coverage requires a specific endorsement, often at additional premium, with higher limits and clearer terms. Mold damage from long-term humidity, gradual seepage, or roof leaks the homeowner did not address is excluded as 'neglect' or 'gradual deterioration'. Producers should explain mold coverage carefully because it is a common source of claim disputes.