Allstate's website does not provide a clear response to this question. The answer is likely: It depends. Homeowners insurance usually covers water damage — and by extension, mold — if the damage is caused by a sudden and unexpected event, but not if it's the result of poor maintenance or flooding. So, for instance, if a pipe bursts, Allstate might help you deal with any resulting mold, but if a persistent leak is left unattended, your coverage will likely not apply.