Does Insurance Cover Water Damage or Mold in California?

Homeowners insurance in California usually covers sudden water damage, like a burst pipe or an overflowing washer, but not flooding, and mold only in some cases. Here is how coverage generally works, what to do in the first days, and the deadlines your insurer has to meet.

The short version

• Sudden and accidental water damage is usually covered. The California Department of Insurance (CDI) says homeowners policies “do not cover flood damage, but they do cover other kinds of water damage,” such as rain coming in through a roof damaged by wind.
• Flood is not. Rising water from outside needs separate flood insurance.
• Mold is limited. CDI lists mold, flood, earthquake, earth movement and “wear and tear” among perils that are usually excluded, but says mold damage caused by a covered peril may be covered.
• Slow leaks are the gray area. Damage that built up over weeks or months is often treated as maintenance or wear and tear. Report water problems as soon as you find them.

Flood insurance

According to FEMA, most homeowners and renters policies don’t cover flood damage. National Flood Insurance Program policies cover up to $250,000 for the building and $100,000 for contents, and coverage usually starts 30 days after you buy it, so it can’t be bought the day a storm is forecast. (FEMA FloodSmart)

What to do after water damage

1. Stop the water and stay safe. Shut the valve or main, and stay away from outlets and wet electrical equipment. Our water damage page covers the first hour.
2. Photograph everything before cleanup. Wide shots and close-ups of the source, wet floors, walls, ceilings and belongings.
3. Prevent more damage. CDI says to make reasonable temporary repairs and keep the receipts; those costs are typically reimbursed. Extracting water and drying fast also limits mold.
4. Call your insurer promptly. Report the claim, write down the claim number, and keep notes on every call.
5. Keep damaged items until the adjuster says otherwise. List them with brand and model numbers, and gather old receipts or photos.
6. Found mold from a long-running leak? CDI warns that cleaning it yourself can spread spores. Tell your adjuster before disturbing it.

Deadlines your insurer has to meet

California’s Fair Claims Settlement Practices Regulations set timelines. As summarized by CDI:

• Acknowledge your claim, provide forms and begin investigating within 15 calendar days of notice.
• Respond to your messages within 15 days.
• Accept or deny the claim within 40 days of receiving proof of claim, with any denial in writing and explained.
• If they need more time, tell you in writing, and update you every 30 days.

If you have trouble with a claim, call the CDI Consumer Hotline at 1-800-927-4357 (1-800-927-HELP). Read CDI’s Residential Property Claims Guide for the full details.

Renters

Renters insurance generally covers your belongings, not the building. Repairs to walls, floors and plumbing are the landlord’s responsibility. If mold is the problem, see our renter’s guide to mold.

Working with a restoration company

• Ask whether they’ll document moisture readings and photos you can give your adjuster.
• Get the scope and price in writing before work starts, and read anything you sign, including any form letting them bill your insurer.
• Check their California contractor license at cslb.ca.gov. Jobs of $1,000 or more in labor and materials need a licensed contractor.

Sources checked October 31, 2026: California Department of Insurance (Residential Property Claims Guide, updated February 27, 2025; Homeowners and Renters guide; property claims adjusting guide); FEMA FloodSmart.

Related: Water damage · Mold removal · Renters and mold · How it works