Texas Department of Insurance On Mold
What Texas Department of Insurance says about mold, insurance and cleanup, with each line linked to its page.
What Is Covered
Most Texas home and renters policies cover mold that grows on an item hurt by sudden and accidental water damage, such as a burst pipe.
If mold develops on a damaged item, it would be covered.
What Is Excluded
Texas home policies usually do not cover mold from gradual leaks or seepage.
Most home policies don't cover water damage from gradual leaks or seepage, and that includes damage from mold.
Mold from a flood is not covered by a home policy. You need a separate flood policy.
Mold from a flood would not be covered because home policies don't cover floods.
The Texas mandatory mold endorsement excludes mold in general but covers mold that follows sudden and accidental water damage the policy covers.
However, we do cover ensuing mold, fungi or other microbial losses caused by or resulting from sudden and accidental discharge, leakage or overflow of water
The basic Texas mold coverage does not pay for remediation or mold testing.
We do not cover the cost for remediation, including testing of ensuing mold, fungi or other microbes.
Add On Mold Cover
Most Texas home policies leave out mold cleanup and testing, but your insurer may let you add it for a covered loss.
Your insurance company may let you add coverage for cleanup caused by a covered loss.
TDI lists mold removal as a common add on you can buy to increase coverage.
Mold removal.
Texas insurers must offer mold buy back coverage at 25, 50 or 100 percent of policy limits.
enhanced mold coverage in the incremental amounts of 25%, 50% and 100% of policy limits
Conditions You Have To Meet
Under the Texas mold rules a hidden water leak must be reported within 30 days after it is or should have been found.
report a hidden or concealed water loss no later than 30 days after such loss is or should have been detected
How To Make A Claim
For a mold removal claim in Texas you need a state licensed mold pro and an inspection showing the mold is gone and the cause is fixed.
Make sure the mold professional has a state license.
Good To Know
TDI says mold can start growing within a day after a leak, so dry the area fast.
Mold can start growing within a day after a leak.
In 2001 and 2002 Texas changed its standard mold coverage after a sudden jump in mold claims against home policies.
a relatively sudden, large and unprecedented proliferation of mold claims against Texas homeowners policies
The old Texas HO-B form was an all risk policy that made up 96 percent of Texas home policies before insurers began moving people to the HO-A.
an all risk policy which until recently has constituted 96% of the homeowners policies issued in Texas in favor of the HO-A
Who May Do Mold Work In Texas
Texas licenses mold assessment consultants, assessment technicians, remediation contractors, remediation workers and the companies they work for through the Texas Department of Licensing and Regulation. A license is needed when the mold covers 25 contiguous square feet or more.
State law says a license holder may not do both the mold assessment and the mold remediation on the same project. A person also may not own a share of both the assessment company and the remediation company on the same project. You can check any license with the TDLR license search.