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Aug 11, 2023

Does a Home Warranty Cover Mold?

Bradford Cuthrell is a meticulous researcher and writer specializing in pet and home finance topics. He's surveyed thousands of pet owners and homeowners, listened to hundreds of customer service

Bradford Cuthrell is a meticulous researcher and writer specializing in pet and home finance topics. He's surveyed thousands of pet owners and homeowners, listened to hundreds of customer service calls from various home service companies and spoken with dozens of industry experts to understand homeowners' common pain points and needs.

Discovering mold in your home is a stomach-sinking experience, and considering the cost of remediation services, you may wonder how you can afford to take care of the problem. While homeowners insurance often has provisions to treat mold caused by a covered incident, mold growth related to water damage from a leaky toilet or pipe isn’t usually covered.

Home warranty plans provide supplemental home protections, but mold doesn’t typically come with coverage. A warranty plan works to cover repairs to appliances and home systems, not assist with repairs related to the failure of these items. For example, if your water heater develops a leak, the warranty can help pay for repairs or replacement of the equipment. It’s possible homeowners insurance would cover other damage that results, including a mold colony.

No, mold coverage is not a typical inclusion with a home warranty. Mold is a problem that can stem from an undetected leak, poor ventilation or a faulty home design. It is a byproduct of an issue with an appliance or structural element of the home, not a direct problem. Home warranties cover appliances and some systems, though the nature of coverage depends on the provider and warranty contract.

While a homeowners insurance policy protects the physical structure and personal property of the home under covered perils, it does not address mechanical failure or breakdowns of major appliances or other costly systems in the home. Home warranty coverage is an elective purchase that extends a manufacturer’s warranty on eligible items failing from normal wear and tear.

Home warranty coverage is specific to the providing company and the plan purchased. Some policies deliver more comprehensive coverage and have a longer list of inclusions, though all warranty plans have coverage limits and exclusions. Commonly covered elements include:

This list is not exhaustive, nor does it represent all the possibilities for coverage. You can buy a standard home warranty policy and beef it up by adding riders that cover more appliances and systems. Added coverage comes with added costs.

Like insurance policies, warranty contracts have exclusions. Some exclusions relate to items in the home, like a sump pump, while others relate to the application of coverage. Mold damage is not eligible for home warranty coverage.

A majority of home warranty providers consider mold-related issues a maintenance problem, because roof leaks, faulty pipes and other undetected incidents factor into mold growth. The condition of the environment, such as poor ventilation, also contributes to growth, making it a problem with the way homeowners or renters take care of a property.

While mold is a standard exclusion, there are exceptions to the rule, depending on the warranty provider and terms of the contract. Mold-related issues may develop because of roof leaks or other problems that may have coverage eligibility under a warranty contract. Fixing a roof leak could prevent the growth of mold spores in an attic or other space.

The option for using a home warranty to address water damage depends on what type of warranty contract you have. Warranties apply when there are defects in the materials or workmanship regarding the construction of your home. Plumbing leaks or roof leaks caused by routine wear and tear are usually eligible for repair through a home warranty.

Instead of using a home warranty for mold remediation, you could file an insurance claim for the issues. Sudden and unexpected water leaks from burst pipes or broken appliances could qualify as a covered peril, though mold damage related to excessive rainfall or other circumstances may require flood insurance. Any work performed is subject to the policy deductible, policy limits and covered perils determination.

To prevent the possibility of mold growth, address any issues of water damage, leaks and poor ventilation as soon as you know about them. If you’re buying a new home, a home inspection should reveal potential issues and provide guidance on how to address them. The inspector can identify what type of mold is present, giving you an idea of an effective way to kill the fungus and prevent new growth.

Black mold can be dangerous to your health, though this is just one type of mold that grows in the right conditions. Performing routine maintenance inspections in areas susceptible to mold growth can help reduce the risk of serious colony growth.

Follow these best practices for controlling or reducing the potential for mold problems:

Look for mold growth in dark, damp areas of your home, such as the attic or basement. It doesn’t take much for a small growth to become a pervasive colony.

Home warranties help homeowners address key repairs needed around a residence. However, when mold is the issue, you may only have coverage if you bought a warranty plan that specifically addresses mold.

Shopping for a home warranty allows you to find the cheapest price point to fit your budget while getting as many inclusions for the price as possible. You may have an option to upgrade a plan to include mold coverage, though it likely will have a higher price tag.

Not all warranty plans are equal, and looking at customer reviews gives you an idea of what the company is like to work with. You don’t want the process of filing a claim to be stressful or frustrating. Online reviews and standings with the Better Business Bureau can give you a picture of the trustworthiness and effectiveness of the company’s warranty claims and services.

Discovering mold in your home is upsetting but you shouldn’t feel hopeless. Mold remediation services are available, although they can be expensive. Home insurance may address mold issues only under limited circumstances. However, a home warranty plan may not provide assistance, either.

Home warranty plans address repairs and replacements for home appliances or major systems and not physical damage to the home. Unless specified through the warranty contract, mold coverage is an exclusion in most warranty plans since providers consider it a maintenance issue.

If your primary goal in purchasing a home warranty is to protect against mold, you will need to do thorough research to determine warranty companies willing to offer that inclusion. Understand that additional inclusion can cause the cost of a warranty to increase. Ask questions, read the fine print and consult with a representative from a home warranty carrier to determine if the coverage will fit your needs.

The cost of mold remediation depends on the location and severity of the mold. You could see prices between $1,500 and $9,000, with an average cost of $3,500. Basement mold removal can run from $500 to $4,000, while remediating an attic could cost more than $9,000. Bathroom removal services are often the most affordable, averaging between $500 and $1,500.

Mold thrives in places that are dark and damp. Because it needs moisture to grow, some of the more common causes of mold growth are leaks in pipes, windows or roofs. It can also occur after flooding or in areas where moisture gets trapped. These include bathrooms, basements and attics although mold can grow anywhere where the conditions are right.

A mold claim on a home insurance policy usually includes the cost of the remediation services and an inspection fee. You could also have replacement or repair costs on items lost or damaged by the mold. However, an insurance policy only applies when the mold is the result of a covered peril.

Insurance policies often cover between $1,000 and $10,000 per occurrence for mold. An inspection could cost $600, and remediation services run around $3,500. Any damaged items filed as a part of the claim could lead to a higher payout expectation.

A home warranty provides peace of mind when major home appliances or major home systems fail. Warranties give financial assistance for the repair or replacement of items within the terms and limits of the contract, with provisions for reduced labor and parts expenses for service calls.

At the MarketWatch Guides Team, we’ve created a comprehensive rating system to rank home warranty providers based on objective factors. We researched each company by speaking with representatives, reading sample contracts, and analyzing and comparing consumer reviews, then deepened our knowledge by gaining homeowner insights through surveys and focus groups.

After collecting data, we scored each provider based on what matters most to homeowners: plan options, cost, trustworthiness, customer service, state availability, additional benefits and coverage specifics.

We established each company’s rating out of 5.0 stars, weighing the following factors accordingly:

Our review methodology for home warranty companies is intended to provide a thorough overview of the best providers nationwide. To learn more, you can read our full home warranty methodology.