Mold treatment and water damage are not typically covered by homeowners insurance, especially if the damage took place slowly over a period of time when it could have been caught by the homeowner. When mold forms quickly due to a bursting pipe or a faulty washer hose, home insurance may cover the mold remediation cost.
Homeowners insurance also does not usually cover flood damage, which can be a primary source of mold growth. If you live in a high-risk flood area, you may need flood insurance. Flood insurance will typically cover the mold removal costs — as long as the mold was a direct result of the water damage and not of neglect after the fact. Insurance policies can vary, so check with your insurance agent for a full description of your policy.