Mold claims against home builders are piling up, and insurers are footing the bill

Source: https://www.insurancebusinessmag.com/, August 31, 2026
By: Matthew Sellers

A wave of mold-related lawsuits against major US home builders is pushing legal reserves higher and adding fresh strain to an already hard liability market for residential construction, according to reporting from the Wall Street Journal.

The lawsuits allege that construction shortcuts, including undersized HVAC systems, poorly sealed windows, and badly ventilated attics, are trapping moisture inside newly built homes and triggering mold growth that homeowners say has made them sick. Builders counter that many claims rest on inconsistent testing methods and unreliable assessors, and that warranty language should shield them from liability. The fight is proving expensive regardless of who’s right, and insurers are increasingly the ones covering the cost. Read more.

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