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Canada - ENDoes Home Insurance Cover Mold?
If you’ve discovered mold in your home, or if you worry that mold could develop, you’ll want to know whether your home insurance policy will help pay for cleanup and repairs. The short answer is it depends on the source of the moisture and the specifics of your policy.
Mold can damage your home and your health, so once you identify it you need to act fast. Check your policy against the coverage information in this article and walk through exactly what to do if you find mold in your home.
Key takeaways
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Mold is a type of fungus that can grow in humid or damp environments and can damage your home and your health.
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The source of the mold, along with your policy, will affect whether mold damage is covered by your home insurance.
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Mold is typically covered when it arises from a sudden, accidental covered peril like a burst pipe, but not if it’s caused by gradual, preventable moisture.
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If you discover mold in your home, make sure you document the cause and act quickly to mitigate damage.
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You can prevent mold in your home with humidity controls and regular maintenance.
3 common types of molds found in Canadian homes
Molds are microorganisms that thrive in wet places. In nature, you might see mold on rotting logs or dewy leaves, but they can also show up in your home, especially in damp or humid areas like bathrooms or the laundry. In fact, more than 270 species of mold have been identified in Canadian homes.
You’ll want to watch for mold because its presence indicates moisture which can damage wood and other materials that go into building Canadian homes. It can also be a health hazard. Although some mold is completely harmless to humans, other types can cause mild or even serious health problems.
Here are some common molds to watch out for:
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Cladosporium is a fungus that shows up as velvety or powdery olive, brown, or black patches. You may have seen it on your window frames, but wallpaper and carpet are other likely locations that host this mold. Cladosporium can cause allergic reactions such as sneezing, sore throat, or coughing, and asthma flare-ups.
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Aspergillus looks like powdery green or yellow patches and is usually found in warm and dusty spaces. Inhaling Aspergillus may cause aspergillosis, a lung infection that can trigger allergic reactions like skin rash, headache, blurry vision, or congestion.
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Stachybotrys chartarum is commonly known as black mold due to its slimy dark-grey or black patches. This fungus grows on materials that include cellulose such as paper, drywall, and wood.
There is broad agreement that all indoor molds can have detrimental effects, particularly for asthmatics or those with compromised immune systems.
No matter the type of mold you might encounter, the insurance coverage rules are the same. If you discover mold in your home, consult a professional remediation specialist and your RBC Insurance advisor to discuss your coverage.
When does home insurance typically cover mold?
In general, your home insurance policy will pay for mold clean-up and repair if it results from a sudden, accidental, covered peril. “Covered perils” are specific events, named in your insurance policy, that could cause property damage. For example, fire, water damage, or earthquakes could all be covered perils, meaning that they’re named in your policy as circumstances that the insurer agrees to pay for.
Mold likes moisture, so it could arise as a consequence of a burst pipe or an appliance leak. These events are typical covered perils in most water damage insurance, so you would be covered.
Remember: To be covered, the mold must be the result of a covered peril listed in your insurance policy. Home insurance coverage and requirements may vary by province, so if you’re in doubt, speak with your RBC Insurance advisor.
When is mold usually not covered?
In the examples above, the mold is a result of an accidental covered peril. Mold that’s caused intentionally, or by gradual, preventable moisture is generally excluded.
These are common exclusions when it comes to mold:
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Slow leaks, like from a pipe inside the drywall, can lead to mold.
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Condensation can build up in certain humid areas of the home such as the bathroom or the laundry room, and if left untreated, mold may take hold.
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Poor ventilation allows humidity to build and can foster mold growth.
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Groundwater refers to the moisture that can rise from the foundations of a home. Sometimes called seepage, this is usually excluded from home insurance policies, but it may be available as an add-on protection.
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Long-standing dampness is often a named exclusion, and it refers to mold (and/or rot or moisture) that gradually develops due to poor ventilation, slow leaks, or sub-standard property maintenance.
The above conditions are often deemed foreseeable and therefore preventable. As a homeowner, it’s your responsibility to maintain your home and your insurance won’t reimburse you for costs arising from neglecting your maintenance.
What to do if you find mold in your home
If you discover mold in your home, your first task is to determine what caused it. If the cause is a named condition (start by checking your water coverage), the removal of the mold and any repairs may be covered as well.
If you think you have a legitimate claim for mold, here are the tasks to take care of the problem.
The steps for making an insurance claim for mold aren’t complicated, but you will need to be organized.
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Document the damage. Take photos and/video of the mold and take note of any evidence of what caused it. If you bring in an expert like a plumber or builder, have them document their diagnosis.
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Contact your insurer right away. Some policies have strict guidelines about the timing of a claim.
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Clean up the damage as quickly as possible. Aim to dry out the area within 24 to 48 hours because the longer moisture is left alone, the more likely it will rot materials and host indoor mold.
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Keep all your receipts. You may need to show them for your insurance claim.
Once your claim is with your insurance company, they will assign an adjuster. An insurance adjuster is basically the insurance company’s investigator. Their job is to gather all the facts of the incident that led to your claim and check them against your insurance policy.
How to prevent mold in your home
Mold loves moisture. If your home is humid, you’re much more likely to have to deal with mold. Here are some steps you can take to prevent water damage and make your home environment less appealing to mold:
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Use an HVAC. Heating, ventilation, and air conditioning systems let you control humidity—along with temperature and air quality. Indoor humidity should be between 30 and 50 per cent. A portable dehumidifier is a low-cost alternative but be aware that these are only effective in one room at a time.
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Use exhaust fans in kitchens and bathrooms when cooking or showering.
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Regularly inspect your appliances including all pipes, hoses, and valves. Replace aging parts as soon as you detect them.
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Avoid indoor carpeting, especially in kitchens or bathrooms where they’re likely to get wet. Carpets can trap moisture and become cozy hosts for mold.
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Properly seal your windows so moisture doesn’t creep in.
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Clean your gutters. Leaves and other organic debris can clog your gutters which become an ideal breeding ground for mold.
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Consider a moisture barrier membrane for your roof.
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Maintain your plumbing and fix any leaks immediately. Consider placing a small water alarm under your sinks. These units set off a siren if they detect moisture and are an effective early warning system.
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Double check your foundation for seepage and ensure that water flows away from your house.
Regular maintenance is the best way to avoid both mold and claim denials.
Mold is a tiny organism that can cause big problems. Protect your home and your health with regular maintenance and act fast if it appears. Speak to an RBC Insurance advisor today to learn more about your coverage or to adjust your policy. Note that specific coverages and exclusions vary by province and policy. Review your certificate of insurance for complete details.
*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia. Not everyone who uses online platforms or calls in will be able to get a quote or buy an insurance policy.
This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.
