I was (and I say was) renovating my basement. I have my walls insulated and
1 wall gyproced. I had some weak spots in my subfloor that I thought I
could patch. I started to rip up one section and realized that most if not
all of the floor is water damaged from years ago. I just bought the house a
year ago. Most of the strapping are rotted badly. I pulled up 1 - half
inch piece of underlay and noticed this weird (could be mould) crystal type
of fuzzy looking stuff. This stuff looks like cotton candy. IS this mould.
I am confused as to what to do. Will this problem (potential mould removal)
be covered by our insurance. Is this extremely dangerous. The basement is
not being used. Our washer and dryer are down there along with a deep
freeze. My wife is due with our first child on Wednesday coming up. Any
advice as to what I should do?

This MAY be confined to one small section, but am not sure. Any advice?
Should I leave it and call our insurance company so they can come over to
take a look? Shoudl I rip up the rest of the floor?

I can take a picture of this white cotton candy crystal looking stuff and
post it if required.

Please advise!!!