Policy Form

• Standard homeowner's insurance comes in three forms: basic, broad and special. Basic and broad policies are "stated peril" policies, meaning they provide protection only for causes of loss that are specifically outlined in the policy. Basic policies never cover mold damage, but broad ones might. Special form policies are all-risk, meaning they provide protection against all causes of loss except those specifically excluded. Read your policy's inclusions and exclusions to see if you are covered for mold damage.
  
  

Subsequent Losses

• Even if mold losses are excluded from your policy, you might be covered if the mold damage arises as a result of a different covered loss. For example, if a pipe bursts inside the walls of your home and you are covered for "sudden and accidental" water damage, your insurer will pay for the broken pipe and the subsequent damage from the water. If mold arises from this water damage, you might be covered for that expense.
  
  

Wear and Tear

• Mold is often excluded from insurance policies because it is frequently the result of normal wear and tear on a home. Mold grows and thrives in moist environments, so a slow leak or constant humidity could easily trigger mold. Homeowner's insurance excludes losses due to normal wear and tear, and this type of mold growth would be considered a routine maintenance problem.
  
  

California and Texas

• California and Texas have had high-profile mold cases, according to HouseLogic.com, which have led to more stringent mold restrictions on insurance policies in those states. Your homeowner's policy may offer only restricted mold coverage or none at all. The Merlin Law Group reports that a court case from 2004, Malley v. Allstate Texas Lloyds, ended in a verdict that insurers are not required to cover mold damage in Texas even as a subsequent result of a covered loss, such as sudden water damage.