In Canada, mold can affect any home, at any time – even those belonging to the most careful and proactive individuals. From unnoticed leaks and poor ventilation to severe weather and seasonal shifts, many factors can lead to mold issues. This begs the question, is mold covered by insurance?
Whether you rent or own your home, this article will provide the answer to that question, along with a simplified explanation of why mold is sometimes not covered by insurance and what you can do to prevent it before it becomes a claim-worthy issue.
Does Home Insurance Cover Mold?
Yes, mold is covered by homeowners, condo, and tenant insurance policies but only under certain conditions. Typically, the main condition is that the mold growth must be the rest of an unexpected, covered peril listed in your policy.
However, if mold develops gradually due to poor maintenance or neglect, it’s typically classified as a maintenance issue and therefore not covered. Insurance policies expect homeowners, condo owners, and tenants to keep their homes in good condition through preventive care and to promptly address potential mold risks as soon as they appear.
Mold and home insurance
As a homeowner, you face potential mold risks both inside and outside your home. While homeowners insurance can cover mold, it generally does so only if the mold results suddenly from a covered peril. Otherwise, you would be solely responsible for paying the costs associated with removing the mold, repairing your home, and replacing any damaged belongings.
Mold and condo insurance
As a condo owner, your condo association’s master policy typically covers mold affecting structural components, exterior elements, and individual units when it originates from a common area or shared system. Meanwhile, your own condo insurance policy can offer protection if mold from a sudden, covered peril damages your personal belongings or your unit’s fixtures and upgrades, like cabinets, flooring, and built-in appliances.
Mold and tenant insurance
As a renter, mold affecting the physical structure of your rental unit and any permanent fixtures is typically not covered by tenant insurance; instead, this responsibility falls under your landlord’s insurance policy. However, tenant insurance can cover your personal belongings if they’re damaged by mold resulting from a sudden, covered peril. Additionally, if mold growth from a covered peril makes your rental unit temporarily uninhabitable, tenant insurance may help cover additional living expenses while repairs are completed.
Why Is Mold Not Covered by Insurance?
Generally, mold damage isn’t covered by insurance unless it’s directly caused by a specific covered peril. Because mold often stems from issues like poor ventilation, lingering moisture, or untreated leaks, insurance companies tend to view it as a maintenance problem rather than a sudden, insurable event. Without a clear link to a covered peril, getting a mold claim approved – or challenging an insurer’s decision – can be difficult.
Moreover, if mold results from water damage and you haven’t added the relevant optional coverage – such as sewer backup, above-ground water, or overland water coverage – you may not be covered. For instance, without sewer backup coverage, any mold resulting from a blocked drain or sewage overflow wouldn’t qualify for insurance protection.
As you can see from the list below, these optional coverages protect against a number of water-related perils that can lead to mold growth, making them valuable additions for anyone seeking protection against mold damage.
- Water seeping through windows, doors, or walls during heavy storms
- Overflowing eavestroughs or downspouts
- Wind-driven rain forcing water into gaps around windows or doors
- Accumulated ice, snow, or wet snow on the roof
- Storm-driven water entry through open windows or doors
- Pooling on flat roofs
- Heavy rainfall, flash flooding, river overflow, rapid snowmelt, and spring runoff
- Sewer backups caused by blockages from non-flushable items, grease, or roots
How Much Does Mold Removal Cost?
Depending on the cause of the mold in your home, there’s a chance that you may have to pay to have it removed from your home yourself. If that’s the case, Ultimate Mold Crew states that mold removal costs in the Greater Toronto Area (GTA) typically range from $3.50 to $4.00 per square foot. Meanwhile, Mold Busters in Montreal reports that standard projects usually cost homeowners between $2,500-7,000. However, the exact cost will vary based on the size of the affected area, the severity of the mold growth, and the complexity of the remediation process.
In any case, it’s important to document the mold damage by taking photographs and noting the cause (ex. a leaking pipe) before any removal begins. Also, be sure to notify your insurer promptly and keep all receipts for related expenses as they will support any potential claim you file.
Mold Prevention Checklist: How to Prevent Mold at Home
Regardless of whether you own or rent, your goal should be to prevent mold from growing at all costs. Regular inspections are key to spotting and addressing issues early. Use this mold prevention checklist frequently to stay on top of any potential mold risks. If you find something concerning, take immediate action or notify someone who can (like your condo association or landlord).
Monitor humidity
- Use a hygrometer to monitor humidity levels, aiming for 30-50%, especially in basements, bathrooms, and kitchens
Properly ventilate high-moisture areas
- Run dehumidifiers during humid months or in lower levels of your home
- Use exhaust fans or open windows when cooking, showering, or running the dishwasher
- Regularly clean and test bathroom and kitchen exhaust fans to ensure they’re functioning properly
Check for signs of leaks and water damage
- Check hoses and connections on washing machines, dishwashers, and water heaters for any signs of leaks
- Check under sinks, around appliances, and near windows for leaks, stains, or watermarks
- Watch for bubbling, peeling, or discoloration on walls or ceilings
- Check for condensation on windows, pipes, and walls, especially in the winter
- Inspect basement sump pumps regularly and test them before heavy rainfall
- Schedule annual plumbing inspections to check for hidden leaks
Limit moisture in vulnerable areas
- Keep houseplants to a minimum in humid rooms, like bathrooms and kitchens, and opt for plants that require less frequent watering
- Use mold-killing cleaning products in areas prone to dampness, such as grout and tile
- Use paint with mold inhibitors in moisture-prone areas like kitchens, bathrooms, and basements
- When renovating, opt for mold-resistant alternatives to products, especially in high-humidity areas
Check your exterior
- Clean gutters a few times a year and check that downspouts extend at least five feet away from the home
- After severe storms, check your roof for leaks or damaged shingles
- Look for cracks around the foundation or walls and seal them, as needed
- Trim back shrubs and plants that are too close to the house
Check your HVAC system
- Change HVAC air filters according to the manufacturer’s schedule
- Ensure the HVAC system is properly maintained to prevent excess moisture buildup
