Does Homeowners Insurance Cover Mold? Mold has been a very contentious topic in the home insurance industry for decades. Between the late 1990s and early 2000s, the insurance industry altered the wording of home insurance policies to limit mold coverage after a spike in mold damage claims in conjunction with homeowners insurance water damage claims. Texas insurers, in particular, were getting multiple claims for the same properties. One property’s paid mold claims could be higher than the homeowner’s insurance limit due to multiple claims. “Back when mold-related damage was covered, insurance companies were paying out hundreds of thousands of dollars in claims. Insurers quickly realized that covering mold was too risky of an endeavor; therefore, many policies now offer limited coverage, if any,” says Steve Severaid, senior vice president and treasurer with The Greenspan Co./Adjusters International. Now most states allow home insurance companies to exclude mold from coverage, except when the mold was the result of a problem covered by the policy. Because your homeowners insurance policy may provide only limited mold-related coverage, there are a few things to consider in order to avoid the staggering cost of trying to get rid of mold. credits to formers adviser and Ashley Kilroy