Fungi endorsement
Definition
A fungi endorsement, such as ISO's Limited Fungi, Wet or Dry Rot, or Bacteria Coverage (HO 04 26/27/28), adds a small, capped amount of mold coverage to a homeowners policy that otherwise largely excludes mold.
What it means
The standard ISO homeowners form (HO 00 03) generally excludes loss caused by mold, fungus or wet rot. It makes one exception: mold hidden within walls, ceilings or floors that results from an accidental discharge of water or steam from plumbing, heating, air conditioning, sprinkler systems or a household appliance.
Insurers often attach a fungi endorsement that replaces this with a limited, defined coverage. ISO’s versions are HO 04 26, HO 04 27 and HO 04 28, depending on the base form. The 03 22 edition is used in 36 jurisdictions. The endorsement pays up to the limit shown in the policy schedule.
Why it matters to your claim
If your policy has a fungi endorsement, its limit is often the most you will receive for mold cleanup, tear-out and testing combined, even if the job costs far more. Find the endorsement and its dollar limit on your declarations page before work starts, and ask your insurer whether testing and tear-out count toward it. Get an itemized estimate so you can see what falls inside and outside the limit. In Florida, mold work over 10 square feet must be done by a DBPR-licensed remediator. Our page on mold coverage compares sublimits by carrier and state.
Sources
- Limited Fungi, Wet or Dry Rot, or Bacteria Coverage, Form HO 04 27, InsuranceXDate (accessed 2026-10-19)
- Homeowners 3 Special Form, HO 00 03 10 00 (ISO sample policy), Insurance Services Office, via Insurance Information Institute (form edition 10 00; accessed 2026-10-19)
- Mold-Related Services FAQs, Florida Department of Business and Professional Regulation (accessed 2026-10-19)
Updated October 19, 2026. Drafted with AI assistance and edited by Vincent Wallace. All glossary terms