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Does Homeowners Insurance Cover Foundation Repair?

Published in Home Insurance Coverage 4 mins read

Homeowners insurance can cover foundation repair, but it is typically contingent upon the damage resulting from a covered peril explicitly listed in your policy. If the cause of the foundation damage is not a covered event, then the repairs will likely not be covered either.

Understanding your specific policy is crucial, as coverage depends entirely on what caused the foundation to fail.

When Foundation Repair is Typically Covered

Insurance policies generally cover sudden and accidental damage. If the foundation damage is a direct result of a peril specifically mentioned as covered in your policy, there's a good chance repairs could be included.

Common causes that might lead to covered foundation repair include:

  • Fire: Damage from a fire can compromise a home's structural integrity, including the foundation.
  • Vandalism: Malicious acts that damage the foundation.
  • Falling Objects: For example, a tree falling on your house and damaging the foundation.
  • Vehicles: Damage caused by a car or other vehicle impacting the house.
  • Sudden and Accidental Water Discharge: This refers to an unexpected burst pipe or overflowing appliance that causes immediate and severe water damage to the foundation. This typically excludes slow leaks.

When Foundation Repair is Usually Not Covered

Most homeowners insurance policies exclude damage that results from natural earth movement, long-term issues, or a lack of maintenance. These are typically the most common causes of foundation problems.

Common exclusions for foundation damage include:

  • Earth Movement: This is a broad exclusion that often covers earthquakes, landslides, mudslides, and sinkholes. Specific separate policies, like earthquake insurance, are needed for these perils.
  • Flooding: Damage caused by water that originates from outside your home (e.g., rising rivers, heavy rainfall, storm surge). Flood insurance is a separate policy.
  • Settling, Shrinking, Bulging, or Expansion: Damage that occurs gradually over time due to the natural movement or shifting of the ground beneath the house.
  • Wear and Tear or Deterioration: Problems that arise from the natural aging of the structure, lack of maintenance, or neglect. This includes issues like crumbling concrete due to age.
  • Expansive Soils: Damage caused by clay soils that expand when wet and contract when dry, putting stress on the foundation over time.
  • Pest Infestation: Damage caused by termites, rodents, or other pests.

Determining Coverage: The Cause Is Key

The key factor an insurer considers when evaluating a claim for foundation repair is the cause of the damage. For instance, if a sudden and accidental plumbing leak causes your foundation to crack, it may be covered. However, if slow, persistent moisture from poor drainage leads to the same crack over time, it likely won't be.

It's essential to:

  • Review Your Policy: Read your homeowners insurance policy thoroughly to understand its specific coverage and exclusions. Pay close attention to sections on "Dwelling Coverage" and "Perils Insured Against."
  • Document Everything: If you suspect foundation damage, document it with photos and videos.
  • Contact Your Insurer Promptly: Report any potential damage to your insurance provider as soon as possible. They will send an adjuster to investigate the cause and extent of the damage.

Common Covered vs. Excluded Causes

Here's a simplified overview of how typical homeowners insurance policies approach foundation damage:

Common Covered Causes (if sudden & accidental) Common Excluded Causes (typically)
Fire, Lightning Earthquakes, Landslides, Sinkholes
Vandalism, Malicious Mischief Flooding (requires separate policy)
Burst Pipes, Sudden Water Leaks Gradual Settling, Shrinking, Expansion
Falling Objects (e.g., trees) Wear and Tear, Deterioration
Vehicle/Aircraft Impact Neglect, Poor Maintenance
Explosions Pest Infestation

Practical Insights for Homeowners

  • Prevention is Paramount: Proactive measures like ensuring proper drainage around your home, maintaining consistent soil moisture, and addressing small cracks early can help prevent major foundation issues.
  • Professional Inspection: If you notice signs of foundation trouble (e.g., sticking doors/windows, wall cracks, uneven floors), consult a structural engineer or a foundation repair specialist for an assessment. Their report can help determine the cause.
  • Understanding Deductibles: Even if damage is covered, you will need to pay your policy's deductible before the insurance coverage kicks in. For large claims like foundation repair, this can be significant.
  • Endorsements and Riders: Some insurance companies offer specific endorsements or riders that can be added to your policy for perils not typically covered, such as sewer backup or limited mold coverage. However, comprehensive coverage for earth movement or expansive soils is rare or expensive.

For a comprehensive understanding of homeowners insurance, consider consulting a reputable insurance resource like Investopedia's guide to homeowners insurance.