Indoor mould can affect health, especially for susceptible people, and may cause or worsen respiratory symptoms. It can also severely damage your property, resulting in expensive repairs.
Mould infestations are typically excluded as a stand-alone loss. Claims stemming from sudden water damage must be separated into the failed item, resulting water damage, mould cleanup costs, damaged contents, and additional living expenses, as policy wording differs for each.
This guide was researched using Health Canada’s detailed moisture and mould guide and Health Canada’s mould safety page. Health Canada offers recommendations on when to call a professional for help with mould removal. We also reviewed the federal insurance-complaint guide and the Insurance Bureau of Canada’s dispute guide.
Does Home Insurance Cover Mould in Canada?
Generally no. Home insurance policies in Canada commonly exclude mould. Mould caused by ongoing humidity, including condensation, seepage, gradual leaks, inadequate ventilation or lack of timely maintenance would not typically be covered.
In limited circumstances, however, the cost of mould removal or repair may be covered where remediation is a necessary part of repairing damage from an insured and usually sudden loss, such as a burst water pipe. That doesn’t mean all costs to address resulting mould will be covered.
Mould or fungi exclusions, sublimits, the source of the water, timely notice, and mitigation duties can affect the outcome of a claim. Review your policy wording, and always request a written response from your insurer for each part of your loss.
Separate the Water Loss From the Mould Claim
| Part of the loss | Coverage question | Common limitation to check |
|---|---|---|
| Failed pipe, appliance or roof | Does the policy cover repair of the failed item? | Wear, corrosion, latent defects, poor maintenance, etc. — exclusions in the property coverage may be applicable |
| Wet walls, floors or cabinets | Was the water escape sudden and insured? | Repeated or continuous leakage, seepage, surface water or policy-specific water exclusions |
| Mould removal | Is remediation covered as part of the insured repair? | Policies have mould, fungi or contamination exclusions, limits, deductibles or narrow resulting-damage provisions |
| Damaged contents | Were the belongings damaged by an insured cause? | Settlement basis, special limits and proof of ownership |
| Upgrades or betterment | Is the work required to restore like kind and quality? | Improvements beyond repairs can be the owner’s responsibility. |
| Temporary living expenses | Was the home rendered uninhabitable as the result of the insured loss? | Determine the trigger, time limit, dollar limit and water sources that are excluded |
Read More: See How Home Insurance Treats Water Leaks
What to Do When You Find Water or Mould
- Put safety first and avoid electrical hazards. Keep vulnerable individuals such as children, older adults, pregnant people and those with respiratory conditions away from the mould and any cleanup activity.
- Stop the source of moisture safely. This may require an emergency callout from a plumber or other qualified trade if it is unsafe or inaccessible.
- Take pictures or video of the source of moisture, its water path, wet building materials and any visible mould before moving items. Retain the part that leaked or failed where possible and safe to do so.
- Report the event promptly to your insurer or insurance broker, providing a factual description. Find out what you can do initially, such as drying and removal, to limit damage, and what evidence the adjuster may require.
- Do not throw away insured property until your insurer confirms it has enough evidence, unless it is unsafe to keep.
- Mitigate the damage by removing standing water and beginning the drying process as soon as possible. Keep copies of all invoices, contractor reports and moisture logs.
- Confirm your insurer’s position in writing, including covered or uncovered causes of loss, applicable deductibles, exclusions or limitations, restrictions on mould coverage and any other policy terms and conditions that could apply.
Use the Size of the Mould Area to Choose the Cleanup Path
| Health Canada category | Total visible area | Suggested response |
|---|---|---|
| Small | One to three mould patches, totalling an area of 1 m² or less | It may be cleaned up by the household with adequate safety measures and protective gear |
| Medium | More than three patches, or more than 1 m² and less than 3 m² of mould | It’s a good idea to have an expert assess the situation before remediation; cleaning up on your own is an option provided proper safety precautions are followed |
| Large | A patch of mould bigger than 3 m² | Depending on the size of the area affected by the mould, professional assessment and cleaning are required |
| Recurring, hidden or contaminated | Regardless of size, hire a professional if the mould was caused by sewage or other polluted water, grew in a concealed area or reappears after cleaning. | Get assistance from a qualified professional to remediate the mould and address the moisture source |
How to Choose a Mould Professional
| Check | What to ask for |
|---|---|
| Cause and scope | Ask whether the professional will conduct a visual and moisture assessment before recommending cleanup. |
| Training and experience | Experience with similar projects; certification in mould remediation or equivalent training |
| Insurance | It is important that your mould professional carries liability insurance that includes mould operations |
| Written plan | Areas of focus should include containment procedures, mould removal procedures, drying procedures, disposal procedures, safety measures, scheduling, estimate/cost and documentation |
| Testing rationale | Ask whether a sample is needed to determine the nature and extent of mould, whether the results will change the remediation scope of work and whether the laboratory is accredited |
| Clearance | For more extensive, structural remediation projects, consideration should be made for a post-remediation inspection performed by a professional that was not involved with the remediation |
Tips to Prevent Mould Growth
- Fix leaks in the foundation, plumbing, roof or windows right away and dry materials as soon as possible.
- Keep indoor humidity between 30% and 50%. Get a hygrometer to measure humidity and use a dehumidifier to control it if needed.
- Ventilate moisture-producing activities such as cooking, showering and drying clothes to the outside. Make sure ventilation fans are working and vented outside, not into the attic.
- Store items in lidded plastic containers rather than cardboard, off the floor and away from cold exterior basement walls.
- Make sure rainwater or melted snow is not collecting next to the foundation. Clean out eavestroughs and make sure downspouts direct water away from your building.
- Do not paint over mould. Remove the source of the moisture and dispose of water-damaged materials. Bleach is not an alternative.
Read More: Learn What Indoor Humidity to Aim for in Winter
If the Insurer Denies the Mould Portion
- Ask the adjuster to indicate the accepted cause of loss. Also ask that they indicate all policy exclusions, limitations and deductibles that will be applied to each item.
- Provide as much factual information as possible, including when the mould was first noticed, the perceived source, what work was previously done, drying efforts, and comments made by contractors. Be careful not to state something as fact until it’s confirmed.
- Request the insurer’s internal complaint process and a final position letter.
- Once you have the final position letter, you can take a home-insurance issue to the General Insurance OmbudService or the appropriate provincial regulator, where applicable.
Read More: Read What to Do About a Delayed Home Insurance Claim