Toxic Mold Insurance Claims in Florida

Toxic mold is one of the most contentious issues in Florida property insurance law. Florida's humid subtropical climate creates ideal breeding conditions for mold species like Stachybotrys chartarum (black mold), Aspergillus, and Cladosporium — all of which can cause serious health problems and devastating structural damage. When mold takes hold in an Orlando home, the remediation costs can reach tens of thousands of dollars, yet many insurers deny or drastically limit these claims. Understanding what Florida law requires of your insurer — and how to fight back when they act in bad faith — is essential to recovering what you're owed.

How Florida Law Treats Mold Damage Claims

Florida homeowners' insurance policies are not required to cover mold as a standalone peril. In fact, most standard policies in Florida explicitly exclude or severely limit mold coverage. Under Florida Statute § 627.706, insurers offering residential policies must make available — but are not required to include — coverage for "sinkholes," and similar structural logic applies to mold: it's often treated as a secondary consequence of a covered peril, not a covered event in itself.

That said, mold coverage can still be triggered when the mold results directly from a covered water loss. Common examples include:

• A burst pipe that saturates walls and flooring
• A roof collapse during a named storm that allows water intrusion
• An appliance malfunction (dishwasher, washing machine) causing hidden leaks
• Improper repairs following a prior insurance claim

If mold growth is a direct and proximate result of a covered peril, Florida courts have generally held that insurers cannot deny the mold remediation costs by pointing to a mold exclusion. The critical legal battleground is causation: proving the mold originated from a covered event, not from long-term neglect or pre-existing conditions the insurer will claim you failed to prevent.

Reading the Fine Print: Mold Caps and Sublimits

Even when coverage applies, Florida policyholders frequently discover that their policy contains a mold sublimit — a separate, lower cap on mold-related losses that applies regardless of the overall policy limit. These sublimits commonly range from $5,000 to $25,000, far below what full remediation of a serious mold infestation typically costs in the Orlando market.

Florida's Department of Financial Services has noted that insurers must clearly disclose mold sublimits in policy documents. If your insurer failed to clearly communicate these limitations at the time you purchased or renewed the policy, that may form the basis of a separate legal argument. Review your Declarations Page carefully — if you see language like "Limited Fungi, Wet or Dry Rot, or Bacteria Coverage," that is your mold sublimit clause.

Optional mold endorsements are available through many Florida carriers and can raise the sublimit substantially. If your policy predates a major remediation event, it may be worth consulting with an attorney about whether the insurer had a duty to offer you upgraded coverage at renewal.

Common Insurer Tactics Used to Deny Mold Claims

Florida insurers routinely deploy a set of predictable strategies to minimize or deny mold-related claims. Recognizing these tactics early gives you a significant advantage:

• Claiming the mold is "long-term" or pre-existing: Adjusters often allege that visible mold indicates neglect over months or years, making it an excluded maintenance issue rather than an insured loss.
• Disputing the source water event: Insurers may argue the covered water event did not actually cause the mold, or that the water damage itself was excluded (e.g., flood vs. storm surge distinctions).
• Invoking the mold exclusion even when water damage is covered: This is legally questionable when mold is a direct result of covered water intrusion, but insurers attempt it routinely.
• Low-ball remediation estimates: The insurer's preferred contractors may submit estimates far below actual remediation costs, particularly for larger homes in the Orlando area.
• Delaying inspection and payment: Under Florida Statute § 627.70131, insurers must acknowledge a claim within 14 days and pay or deny within 90 days. Delays beyond these windows can expose the insurer to bad faith liability.

The Role of Independent Testing and Documentation

Your single most important tool in a Florida mold insurance dispute is independent, professional documentation. Do not rely solely on the insurer's adjuster or their preferred inspector. Instead, take the following steps as early as possible after discovering mold:

• Hire a certified industrial hygienist (CIH) to conduct air and surface sampling and identify the mold species and extent of contamination.
• Obtain a written remediation estimate from a licensed Florida mold remediator (required under Florida Statute § 468.84).
• Document the source water event with photographs, date-stamped videos, plumber reports, or weather records tying the event to a specific date.
• Preserve all correspondence with your insurer in writing and keep a log of every phone call.
• Do not discard or fully remediate the mold before the insurer has had a reasonable opportunity to inspect — premature remediation can compromise your claim.

Florida's Assignment of Benefits (AOB) laws were significantly reformed in 2023, limiting contractors' ability to file claims on your behalf. This means you must take an active role in managing your own claim, making independent documentation even more critical than in prior years.

When an Insurer Acts in Bad Faith

Florida's bad faith insurance statute, Florida Statute § 624.155, provides powerful remedies when an insurer handles your claim improperly. Bad faith conduct can include unreasonable delays, failure to properly investigate, lowball settlement offers without supporting documentation, or misrepresenting policy terms.

Before filing a bad faith lawsuit in Florida, you must first file a Civil Remedy Notice (CRN) with the Department of Financial Services, giving the insurer 60 days to cure the violation. If the insurer fails to respond adequately, you may proceed with litigation. Successful bad faith claims can result in recovery of the full policy limits plus attorney's fees, costs, and in egregious cases, extracontractual damages.

Orlando and Central Florida courts have seen a significant volume of mold-related insurance litigation in recent years, particularly following hurricane seasons and the region's persistent humidity issues. Florida courts have generally been receptive to policyholders who can demonstrate both a covered triggering event and an insurer's unreasonable conduct in handling the resulting mold claim.

If your mold claim has been denied, underpaid, or delayed beyond Florida's statutory deadlines, you have legal options — and an experienced insurance attorney can evaluate whether your insurer's conduct rises to the level of bad faith, entitling you to significantly more than the original claim value.

Need Help? If you have questions about your case, call or text 833-657-4812 for a free consultation with an experienced attorney.

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