When Does Flood Insurance Cover Mold?

Many homeowners make the mistake of assuming flood damage will be covered under their home insurance policy. Along with earthquakes, floods are commonly excluded from home insurance policies and must be purchased separately. But how much does a flood insurance policy cover?

Flood insurance policies cover water damage caused by natural floods and limited unnatural flooding. In some cases, flood insurance will cover mold. Flood insurance covers mold only if:

The mold is not due to negligence 

Mold will not be covered under flood insurance if it simply arises out of negligence. Preventable mold will not be compensated for, as it is seen as the homeowner’s responsibility to take the correct preventative steps to keep mold from damaging the home. This can include mold that occurs after a natural flood. If an insurance agency investigates the claim and believes the proper care was not taken to prevent mold after a flood, your claim could be denied. Make sure to clean up wet spots as soon as possible and invest in effective mold cleaning solutions.

The mold isn’t caused by pipe malfunction 

Flood insurance does have limited coverage when it comes to damage due to leaks and burst pipes. But issues related to sewer or water systems that result in mold typically aren’t covered by a basic flood insurance policy. Instead, you may need a water and sewer system coverage added to your policy. Keep in mind that negligence is also considered here. If an incident occurs due to a lack of maintenance on the pipes, water system or sewage system, it’s unlikely your home or belongings will be covered.

Pipe bursts are sudden and unexpected 

There are exceptions to nearly every rule, of course. As long as the incident does not occur out of negligence, flood insurance can cover damage to the home or your personal belongings due to a sudden and unexpected burst or break in pipes, especially caused by an outside flood.

How Much is Flood Insurance? 

The average cost of flood insurance in the U.S. is about $708 a year (around $59 a month). In Virginia, homeowners pay an average of $737 a year ($61 a month). These prices depend on the frequency and historical damage of floods in the area, coverage limits and the value of the home and personal items you are insuring. Flood insurance is relatively inexpensive and can save thousands of dollars down the road.