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I have a new home and my AC unit which is located in my attic started leaking. The unit sits inside a drip pan but was not installed properly and when it leaked water ended up out of the drip pan onto a piece of plywood, onto insulation and onto the sheetrock. The water came through a seam in the sheetrock and leaked into my kitchen. My question is should the sheetrock be replaced or just repaired? If the sheetrock is repaired should I worry about mold?
 

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Let the sheetrock dry out. Remove the wet insulation and let it dry out.
If the sheetrock hasn't bulged or warped, you can probably leave it in place. If it has discolored, prime it with a stain killer primer from Zinsser or Bin and you should be able to topcoat it and be done.
Mold doesn't usually grow as a result of a single incident issue that's been addressed. If by chance it did, a simple application of a mold spray used for bathrooms will clean it up.
The A/C pan needs to be fixed so this is not a reoccurring event.
Ron
 

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Inspect the top of the drywall. If there is anything black on it, get it replaced. It already has grown mold and you don't need that in a new home. If it's only water stained, then dry it and seal it with the sealers that were mentioned above. For the most part you can get away with a one time leak and not have an issue, but you really don't know how long this may have ben wet before it broke through.
 

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See also: Should I repair or replace sheetrock---double post. Be safe, G
 
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