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You are hoping that your homeowners' insurance policy will cover the damage If situations such as burst pipes or an AC system overflow allow mold to grow, your homeowner’s insurance will cover all or some of the mold removal cost because the mold is considered an extension of “water damage.” Most homeowner’s insurance policies cover $5,000 of mold remediation, though some range from $1,000 to $10,000 Home Insurance Will Only Cover Mold If It Was Caused by a “Covered Peril” Mold damage is quite often a result of preceding water damage. care auto insurance