Does home insurance cover mould in Ontario?
Sometimes, and the answer turns on the water behind the mould. The Insurance Bureau of Canada, the national association of Canada's home, car and business insurers, lists water damage among the insured perils of a home policy, and says it usually includes water that escapes suddenly and accidentally from indoor plumbing, heating, sprinkler or air conditioning, from a domestic appliance, or from a water main. The same page says gradual deterioration is natural and expected rather than an insured peril, and that a home insurance policy is not a maintenance contract. So mould after a burst supply line starts from a peril a policy may cover, while mould from a slow drip or a damp basement starts from the kind of gradual damage IBC says is not insured. Your own policy's wording decides. Read it, and call your insurer, before any mouldy material is torn out.
Mould behind the wall?
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(613) 852-4059Sudden water or slow water: where a mould claim starts.
IBC's explanation of home coverage is built on perils. An insured peril is a chance event, unexpected and accidental as far as the policyholder is concerned. Its examples of what falls outside that are the gradual deterioration of shingles and a wooden fence rotting: natural, expected, and so not insured.
Water damage is on IBC's list of insured perils, and IBC says it usually includes damage from the sudden and accidental escape of water from an indoor plumbing, heating, sprinkler or air conditioning system, from an indoor or outdoor domestic appliance, or from a water main. A supply line that splits under the kitchen sink matches that wording. A drain that has seeped behind a vanity for a year is closer to the gradual damage IBC calls expected, and whether your insurer sees it as sudden or gradual is a question for your policy and your adjuster.
The IBC pages cited here do not mention mould by name, as covered or as excluded, so the answer sits in your own policy. Look in its exclusions for mould, mold or fungi, and check whether the policy pays anything toward mould that follows a covered water loss, and up to what limit.
Sewer backup, overland water and frozen pipes: the optional and the excluded.
Two common sources of basement water sit outside a basic policy. IBC lists overland flooding and sewer backup as optional coverages you may be able to buy separately. It describes overland water as water coming in from heavy rain, spring thaw, or a lake or river overflowing, and sewer backup as sewers and drains backing up or a sump pump failing.
So if the mould is in a basement after a spring melt or a backup, the first question for your broker is whether you bought either add-on, and to what amount. The Financial Services Regulatory Authority of Ontario, the province's insurance regulator, puts both on its list of questions to ask when you buy a policy: does it cover floods, also known as overland water, and are you covered for sewer backup, and if so, to what amount.
Frozen pipes are the Ottawa case. IBC generally regards damage from indoor plumbing that freezes as preventable. If you are away for more than four days during the normal heating season, it says you must drain the plumbing or have the home checked regularly or daily to make sure the heat stays on, and that freezing damage would likely be excluded where those precautions were not taken.
Condo owners and tenants: whose policy covers what.
A condo has two policies over one unit. IBC says the condominium corporation's policy typically covers the buildings on the condominium plan, the common property, and fixtures built or installed as part of the original or standard construction, such as flooring, wall coverings and plumbing fixtures. It does not cover your personal contents, the improvements made to your unit, or your liability.
Your unit owner's policy covers those, including upgrades such as hardwood flooring or custom counters made by you or by previous owners, up to a stated limit. So mould in a condo can involve both policies at once: an original wall covering on the corporation's side, the hardwood you installed on yours. Tell the property manager and your own insurer.
Tenant insurance is for what you own. IBC describes it as covering your possessions and your personal liability, plus additional living expenses when a covered loss means you cannot live in the apartment, subject to limits. The walls belong to the landlord.
Before the mouldy material comes out: the claim steps IBC lists.
Report it first if you think the loss may be covered. IBC says you must report a claim to your insurance representative and give complete, accurate details as soon as possible after property damage.
Document before anything moves. Photograph the damage, keep detailed notes, and keep damaged items unless they are dangerous or pose a health hazard. IBC's steps say to confirm with your insurer before disposing of damaged property, and to keep every receipt for cleanup.
Stop it getting worse in the meantime. IBC notes that your policy requires you to act to limit further damage, and with a leak that starts at the valve.
You choose who does the work. IBC says you can use a contractor or supplier of your choice for repairs, that your insurer will estimate the damage, and that if your contractor charges a different price you pay the difference. Most insurers have preferred vendors who work to the estimates they have agreed.
If your insurer asks for a proof of loss, the form lists the damaged property and its value, and you sign and swear that the statements are true. IBC says it typically has to be returned within 30 days, and that an untrue statement can void your insurance.
Whether or not a claim is made, the mould still has to come out. Our mould removal page explains how that job runs: finding the water first, containing the area, removing what cannot be cleaned, then drying and hauling it away.
If the claim is refused: who to ask, in order.
Start with the people on the policy. IBC suggests asking your broker, agent, company representative or claims adjuster to explain the decision. If that does not settle it, IBC's Consumer Information Centre gives advice at 1-844-227-5422, and IBC also points to the General Insurance OmbudService at 1-877-225-0446.
FSRA reviews complaints when an insurer is not following the rules. It also states that it cannot mediate disputed or denied claims, and recommends legal advice to resolve them.
At renewal, use FSRA's list of questions for an agent or broker. It includes what the policy excludes, with an example of when an exclusion would apply. Ask it about mould by name.
Where the water came from, and what IBC says about it.
Each description in this table is the Insurance Bureau of Canada's, quoted in the sections above. The two Financial Services Regulatory Authority of Ontario consumer pages this guide also cites were read on 2026-09-28, and linked at the foot of this page.
| Where the water came from | What IBC says | Where the mould question goes |
|---|---|---|
| A plumbing, heating, sprinkler or air conditioning system that burst or leaked suddenly | An insured peril: the sudden and accidental escape of water. | Your insurer, and your policy's wording on mould after a covered loss. |
| A domestic appliance, indoors or out, or a water main | Also on the insured perils list. | Your insurer, and the same mould wording. |
| A slow leak, damp or condensation over months | Gradual deterioration is natural and expected, not an insured peril. | Your policy wording, and your adjuster's view of sudden against gradual. |
| A sewer or drain backup, or a failed sump pump | Optional coverage, bought separately. | Whether you bought sewer backup coverage, and its amount. |
| Heavy rain, spring thaw, or a lake or river overflowing | Optional overland water coverage, bought separately. | Whether you bought overland water coverage. |
| Pipes that froze while the home was left unheated | Generally regarded as preventable; likely excluded if you were away more than four days in the heating season without draining or checks. | Your policy, and the precautions you took. |
| A condo's original walls, floors or plumbing fixtures | Typically the condominium corporation's policy. | The property manager, and your own unit policy for anything you upgraded. |
Sometimes. The Insurance Bureau of Canada lists water damage as an insured peril and says it usually includes the sudden and accidental escape of water from plumbing, heating, sprinkler and air conditioning systems, and calls gradual deterioration natural and expected rather than insured. Mould after a covered water loss may be paid for up to whatever limit your policy sets. Mould from long-term damp starts from the gradual kind of damage. Your policy's exclusions decide.
Only if the policy covers the loss the mould came from, and only to the limit it sets. Check the exclusions for mould, mold or fungi, speak to your insurer before removing damaged material, and keep the cleanup receipts. IBC says you can choose your own contractor, and that you pay any difference between their price and the insurer's estimate.
It depends where the water came in. IBC lists sewer backup and overland flooding as optional coverages bought separately, so a policy without them may not respond to either. Water from an indoor pipe that bursts suddenly is a different peril, and it is on IBC's list of insured perils.
Speak to your insurer first. IBC's claim steps say to photograph the damage, keep damaged items unless they are dangerous or pose a health hazard, and confirm with your insurer before disposing of damaged property. Your policy also expects you to limit further damage, so stop the water in the meantime.
Ask your broker, agent or adjuster to explain the decision, then contact IBC's Consumer Information Centre at 1-844-227-5422 or the General Insurance OmbudService at 1-877-225-0446. FSRA, Ontario's insurance regulator, reviews complaints about insurers that are not following the rules, but it states that it cannot mediate disputed or denied claims and recommends legal advice.
Tenant insurance covers your belongings and your personal liability, plus additional living expenses if a covered loss makes the apartment unliveable, subject to limits, according to IBC. The building itself, walls included, belongs to the landlord.
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