In most cases, no. You can safely assume that home insurance won’t cover any damage caused by mould or for mould removal or cleaning. Mould and fungus is typically found as a general exclusion in home insurance policies, and will not be covered in any way.
However, there are some exceptions. For example, Youi's home insurance PDS states: "We will not pay for death or bodily injury to any person, or loss or damage to property, caused directly or indirectly by[...]mould, rot, damp, or the effects of the climate or weather, unless as a direct result of an incident for which we have accepted a claim".
This doesn't mean that you will be covered, since you can generally still take measures to prevent mould from developing, but it does suggest you could be entitled to some cover.
Home insurance won’t cover mould damage for two main reasons. Firstly, some mould growth is almost unavoidable, especially in more tropical areas of Australia. Secondly, it doesn't usually cause any damage if taken care of as quickly as possible.
So mould itself is unavoidable, while mould damage is preventable. Neither of those situations is intended to be covered by home insurance.
You’ll want to fix it as soon as possible. Depending on the surface, the extent of the problem and the type of mould, this might be as easy as simply wiping it away with a cloth, or it might need professional cleaning services.
In all cases, you’ll want to make sure you follow the preventative steps going forwards. Without doing so, it’s probably just going to come back again quickly.
The cost of a mould removal service depends on the extent of the problem, the type of mould and the location. A quote might range from hundreds to thousands of dollars.
For example, you might be able to clean it away yourself for free, and then open a window. Or you might be paying thousands of dollars for actual home renovations in order to eliminate a source of rising damp. If this is the case, you need to involve the landlord.
Whether the landlord or the tenant is responsible for mould depends on the situation.
Generally, the landlord will only be responsible if the mould is there because of the landlord’s failure to fulfill their obligations.
This might be:
Meanwhile, the tenant might be responsible when the mould is caused by:
Both the tenant and the landlord have certain obligations under a rental contract. If the growth of the mould, and subsequent damage, can be clear tied to the failure of one party to meet their obligations then that’s probably the party that’s responsible for it.
Landlord insurance will also typically exclude mould damage. Whether you’re a tenant, a landlord or a homeowner, insurance companies don’t want anything to do with mould.
If you’ve found that a tenant’s property has damage from mould, you may want to:
If extensive mould damage was caused by a failure on the part of the tenants, then it’s safe to say they probably won’t be getting their bond back.
If you’re a landlord and find that the damage is extensive, you might take legal action to have the tenant cover that damage.
Note that your own obligations as landlords will probably also come under the magnifying glass when you do, and the final verdict will come down to the court’s decision.
The factors that contribute to mould growth are:
Moisture is the number one consideration, because mould will typically not grow without it. But sometimes it might be impossible to prevent, in which case you need to pay closer attention to the other risk factors listed above.
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