There’s no experience quite like discovering black mold creeping across your basement wall just days after a heavy storm — and realizing it could cost thousands to remove.
The truth is that mold is far more common in New Jersey than you might think. One 2024 study even found that Atlantic City, Jersey City, and Newark all ranked among the moldiest cities in the United States!
No matter what part of the state you’re in, dealing with mold in your home can be a stressful and expensive experience. For New Jersey homeowners, knowing how insurance can help cover mold damage is key to protecting your property and finances.
As a trusted mold remediation company in New Jersey, GreenWorks specializes in identifying, treating, and preventing mold growth in homes and commercial properties. With years of experience, our team has helped countless local homeowners deal with messy insurance claims and restore their homes to safe, livable conditions.
So, let’s break down what homeowners insurance typically covers, the claims process, and proactive steps to prevent mold issues in the first place.
Does Homeowners Insurance Cover Mold in New Jersey?
Homeowners insurance policies in New Jersey vary, but most follow general guidelines for mold removal coverage.
Typically, insurance covers mold damage if it results from a covered peril, like water damage from a burst pipe or a malfunctioning appliance. However, mold caused by neglect or long-term moisture problems is usually excluded.
For example, if a sudden plumbing leak leads to mold growth and you act quickly to fix the issue, your policy may help pay for remediation. On the other hand, if mold develops over months from an unresolved roof leak, insurance likely won’t cover the damage.
New Jersey Regulations and Coverage Limits
New Jersey homeowners should be aware of state-specific guidelines and insurance practices. The New Jersey Department of Banking and Insurance offers resources to help residents understand their policies and rights.
According to Insurance.com, coverage limits for mold remediation often range from $2,500 to $5,000, but adding an endorsement to your policy can increase that limit for added protection.
Insurance providers in New Jersey may also have specific requirements to cover mold, such as reporting damage within a set timeframe or using certified mold remediation specialists.
When you’re aware of these conditions, you may be able to prevent unexpected claim denials.
Common Mold Damage Scenarios and Coverage Insights
Flood-Related Mold
Flooding is a major concern for New Jersey homeowners, especially in coastal and low-lying areas. In fact, increased rates of flooding over the last couple of years have driven insurance rates to rise significantly in recent months, according to local news sources.
If your home has experienced a flood or water damage, know that mold growth can begin within 24 to 48 hours—and the damage may be extensive.
Typically, standard homeowners insurance policies do not cover mold damage or any damage originating from outside flooding (as stated by Consumer Affairs).
Separate flood insurance is likely necessary to fully protect your home. We recommend discussing flood insurance with your provider ASAP to learn what would be covered.
Plumbing Leaks
Plumbing leaks are one of the most common causes of mold growth. If a burst pipe or leaking faucet causes mold to develop, your homeowner’s insurance may cover the costs of remediation.
However, to qualify for mold remediation coverage, you must prove that the leak occurred suddenly and not as a result of neglected maintenance. Additionally, most insurance companies limit what they will pay for mold removal, so you may still need to shoulder some of the cost if the bill exceeds that limit.
HVAC Issues
Your home’s HVAC system helps regulate indoor humidity levels, but if it malfunctions or is improperly maintained, it can lead to mold growth.
Many New Jersey homeowners don’t realize that mold in HVAC systems may not be covered by insurance if regular maintenance was neglected. As such, we recommend having your system serviced regularly to help prevent this issue from becoming an insurance headache.
Storm Damage
Severe storms, including hurricanes and nor’easters, are common in New Jersey, particularly between June 1 and November 30 (according to the state’s Office of Emergency Management).
A bad storm can cause serious water intrusion that leads to mold growth. If a storm damages your roof, windows, or siding, your homeowner’s policy may cover both the repairs and any mold remediation resulting from the water.
Of course, you should still check your policy’s specific exclusions to make sure mold damage is covered in the event of a storm. For more information, you can visit New Jersey’s Office of Disaster Resilience & Storm Recovery.
Step-by-Step Guide to Filing a Mold Homeowner’s Insurance Claim in New Jersey
1. Document the Damage
First things first: as soon as you notice mold damage, take photos and videos of the affected areas. Be sure to capture the extent of the problem and any signs of moisture or water entry.
This documentation will be hugely important if you want your insurance to cover mold services.
2. Stop the Source
If possible, stop the source of the water or moisture causing the mold. This could mean shutting off the water supply, fixing a leak, or using fans to dry out an area.
Taking immediate action will help prevent further mold growth and show your insurance provider that you acted responsibly.
3. Contact Your Homeowner’s Insurance Provider
Next, reach out to your insurance company as soon as you discover mold damage. Make sure to report the issue immediately, as delays in reporting can result in a denied claim. You’ll also want to provide the documentation you’ve gathered to support your case.
4. Get a Professional Assessment
You will likely need to hire a professional mold remediation company to assess the damage. Expert mold inspection and testing can help determine the extent of the infestation and provide a detailed report to support your claim.
5. Work with an Adjuster
Your insurance company will likely send an adjuster to inspect the damage. It’s best to cooperate fully and provide all necessary documentation, including repair estimates and expert assessments. The adjuster will then help determine the amount of coverage to which you are entitled.
6. Appeal if Necessary
If your mold claim is denied, don’t give up right away. In New Jersey, you have the right to appeal a denied claim. You can request a review by a different adjuster or seek legal assistance to challenge the decision if you believe the denial was unjust.
Tips for a Strong Mold Claim
✓ Act Quickly
The longer mold is left untreated, the more expensive and complicated the remediation process becomes. Contact your insurance provider and start the remediation process as soon as possible, both for the sake of your home and to strengthen your claim.
✓ Keep Records
We cannot emphasize this enough: Maintain detailed records of all communication with your insurance company, repair estimates, and mold remediation efforts. These will be essential if you need to appeal a decision or provide further evidence for your claim.
✓ Get Multiple Estimates
The NJ Department of Health recommends getting multiple estimates for mold remediation from licensed professionals. This can help you feel confident that you’re getting a fair price, but it also provides additional documentation to support your claim.
Preventing Mold to Avoid Costly Claims
The best way to avoid the hassle of insurance claims? Prevent mold from growing in the first place! Even if you already have mold or think you will later, it’s best to take every step possible to prevent it from forming for the sake of future claims (as recommended by Bankrate).
Taking the necessary precautions shows the claims adjuster that you’ve acted responsibly to mitigate the damage, even if unavoidable mold begins to form.
Here are some tips to keep your New Jersey home mold-free:
Control Humidity
Maintaining a relative humidity level below 60% can significantly reduce the risk of mold growth. Use dehumidifiers in damp areas like basements and bathrooms to keep moisture levels in check.
Fix Leaks Quickly
If you notice any leaks in your home, whether from pipes, windows, or the roof, repair them as quickly as possible. Even small leaks can lead to mold growth if not addressed in a timely manner.
Ventilate Properly
Proper ventilation systems in areas like the kitchen, bathroom, and attic help prevent moisture buildup. Make sure your home is equipped with exhaust fans and that they are used regularly to promote airflow.
Inspect Regularly
Regularly inspect areas that are prone to moisture, such as basements, crawlspaces, and attics. Early detection of mold can help prevent a small issue from turning into a major problem.
The Cost of Mold Remediation in New Jersey
This isn’t exactly a cut-and-dry equation. Mold remediation costs can vary significantly, but in New Jersey, most homeowners can expect to pay between $1,500 and $6,000, depending on the severity and size of the infestation.
When home insurance covers mold damage, this financial burden can be significantly reduced. However, severe infestations in larger homes can exceed $10,000, making added policy endorsements worth considering.
Final Thoughts
Understanding your homeowners insurance policy and whether it covers mold damage can make a significant difference when unexpected issues arise. When you’re informed, the claims process becomes less of a headache.
Need Mold Removal Services in New Jersey?
If you’re dealing with mold in your New Jersey home, don’t wait — GreenWorks is here to help. Our professional team is experienced in mold remediation and working with home insurance companies to confirm that you get the mold remediation coverage you deserve.
Contact us today for a consultation. We’re prepared to help restore your home to its safe, healthy condition!
Published on: October 28, 2021
Updated: April 4, 2025
