Your homeowner's insurance does not normally cover mold damage. This is because the damages are most likely caused by the flood itself. You should take out a separate flood policy which will cover mold damage as well.
Generally speaking, when it comes to water heaters, your homeowners' insurance covers mold damage. Water heaters cracking or rupturing are normally completely out of a person’s control. That being said, make sure you service your water heater as per the manufacturer’s instructions.
If your bathtub overflows this is most likely your own fault meaning that your homeowner's insurance will not cover you for mold damage resulting from this event. Additionally, if your bathtub has leaked for a long period of time, you will not be covered either.
If a pipe in your home bursts your homeowner's insurance will cover you for mold damage. This will be considered an accidental incident and as long as all your papers are in order and you follow the steps outlined above, you should be able to make a claim without any problems.
Mold Remediation Insurance
Mold removal and mold remediation are two different things. In fact, if you come across a company that tells you they can remove the mold in your home once and for all, you should probably look elsewhere. The fact of the matter is, mildew and mold are everywhere in microscopic form so removing it is impossible. Mold remediation gets the mold levels in your home back to normal. Always check your mold remediation insurance as many companies have now put in place measures to reduce the amount they are legally forced to pay out for mold damage, even if it is caused by an accident that was out of your control. Always check the maximum limit your insurance policy states for mold remediation as yours could range from anywhere between $1,000 and $10,000.