Allstate, the second biggest home insurer, added language to clarify that it doesn’t cover “mold, fungus, wet rot, dry rot, or bacteria” unless the problems originate from events already covered by the policy. And even when it is covered, the costs are limited to $5,000 – a lot less than Melinda Ballard’s $32 million settlement. Safeco Corp put a $10,000 cap on their mold coverage.