Insurers deemed mold too risky decades ago. That coverage gap still surprises homeowners

When a nor'easter struck in 2018, intense winds blew shingles, gutters and siding off Brandi Schmitt's home in Lothian, Maryland.

Her family waswithout electricity for three days, during which time all of their food in the refrigerator spoiled and water continued to leak into the home, Schmitt said.

As soon as the power came back on, Schmitt said she called her insurance company, USAA, to report the damage.

An adjuster visited the home a week later, anddetermined the 5,000-square-foot roof needed a total replacement. While she and the insurer debated points of the claim, Schmitt said, the unrepaired damage allowed snow and water from subsequent storms that spring to seep through into her home.

What started as wind and water damage evolved into something much worse: mold.

An independent specialist found no mold in the home on May 2018, according to a "review for fungal activity" investigation documents USAA provided to Schmitt that CNBC reviewed. Then in October, a follow-up investigation found and "observed visible moisture and an increased moldy odor."

In the intervening months, Schmitt and her family had developed health issues, including rashes and coughs. Their yellow Labrador and four guinea pigs all died within months of each other.

An immunoglobulins test result from November 2018 provided to CNBC by Schmitt shows high levels of antibodies in her blood from exposure to aspergillus niger, a common mold.

"I called [USAA] and said, 'Are you going to wait for it to kill us?'" Schmitt said.

The family moved out of the house for good that same month.

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