Homeowners insurance protects against many problems that can develop with a property. But does homeowners insurance cover foundation repair? This guide will explain when problems with a foundation are covered so homeowners can be prepared.
When does homeowners insurance cover foundation damage and repairs?
Does homeowners insurance cover foundation repair? It depends on the cause of the damage to the property's foundation. Here are some examples of situations where the answer to the question, does homeowners insurance cover foundation issues, is yes.
Damage from covered natural disasters
Homeowners policies usually cover damage resulting from:
- Fires
- Lightning
- Collapse due to snow or ice
In some parts of the country, damage from windstorms is also covered. If a covered cause results in foundation damage, then insurance will pay for necessary repairs. So in determining, does homeowners insurance cover foundation issues, the big question is what the cause of the issue is.
Damage from fallen trees
If a tree falls on a property and damages the foundation, the answer to the question, does homeowners insurance cover foundation repair, is likely yes. However, in many cases, damage from tree roots is excluded. So when asking, does home insurance cover foundation problems related to trees, it's important to be specific about the cause.
Water damage from certain leaks
Does home insurance cover foundation repair due to water damage? It depends. Standard home insurance policies exclude flood coverage. So, does homeowners insurance cover foundation repair after a flood? Not unless the property owner has a separate flood insurance policy.
Water damage, however, can be covered if it occurs as a result of a plumbing or HVAC system leak.
Damage from man-made causes
Most homeowners policies cover damage due to riots or civil disturbances. Many also cover damage resulting from aircraft accidents. Vandalism may be a covered peril as well. As long as a policy doesn't exclude a man-made cause, any resulting damage to the foundation should be covered.
Does homeowners insurance cover foundation leaks?
This is a complicated question. In some cases, a policy will cover this type of loss. But in others, it won't. It will cover a foundation leak only if the leak occurred due to a covered cause.
For example, if the plumbing in the soil surrounding the home leaks and cracks the foundation, the underlying cause is a covered plumbing issue. The foundation leak would be covered. While homeowners insurance wouldn't usually pay for any damaged pipes in this situation, it would pay for water damage resulting from the foundation leak as well as repairs to the damaged foundation itself.
However, foundation leaks resulting from earth movements, flooding, or other excluded causes will not be covered.
When is foundation damage not covered by your home insurance policy?
Foundation damage is not covered if it occurs due to certain excluded causes. Here are some examples of situations where the answer to the question, does homeowners insurance cover foundation repair, is no.
Natural settling
Homes can settle over time. This can cause cracks in the foundation. Home insurance will not cover repairs resulting from natural settling of a house.
Normal wear and tear
Sometimes, foundations simply get old. When normal wear and tear causes foundation problems, it's typically not covered.
Floods
Floods are excluded from coverage with standard insurance policies. If a flood occurs and damages the foundation, it will not be covered.
Sinkholes
Sinkholes are also excluded from standard home insurance coverage. Policyholders can choose to buy separate sinkhole protection. When sinkholes cause damage to foundation, standard insurance policies will not pay for repairs.
Does homeowners insurance cover foundation repair necessitated by pests such as vermin or termites. The answer is no. Unfortunately, any pest-related damage to a home's foundation is not paid for by home insurance.
Faulty construction
If a builder or contractor fails to construct the home's foundation properly, this can result in serious issues. Home insurance does not cover this type of problem.
But while the answer to the question, does homeowners insurance cover foundation issues caused by contractor negligence is no, homeowners may have some recourse. They could potentially make a claim against the builder.
What to do if your policy doesn't cover foundation issues
When choosing a home insurance policy, property owners should make sure they are fully covered. This may mean buying additional protection beyond standard homeowners insurance coverage. For example, someone who lives in a sinkhole or flood prone area may want supplementary sinkhole coverage or flood insurance.
Buying extra protection can raise the average price of homeowners insurance. But it may be well worth it to avoid having to pay for costly foundation damage out of pocket.
What are signs of foundation or structural damage?
Common signs of foundation damage include:
- Cracks in walls, floors, or window and door frames
- Bowing in the walls of a home's basement
- Water intrusion or signs of water damage
- Sagging floors in crawl spaces
- Doors that don't open or close properly
- Sunken steps, decks, or porches
How to prevent home foundation damage
Steps to prevent damage to a home's foundation include:
- Limiting water intrusion by ensuring proper drainage around the home
- Using the services of a pest control company to prevent an infestation
- Avoiding planting trees too close to the house that could cause foundation problems through overgrown roots
- Ensure gutters are kept clean and drain water away from the home
By avoiding damage, property owners should hopefully never need to ask, does homeowners insurance cover foundation repair?
How do you file a claim for foundation damage?
Insurers lay out the claims process within insurance policies. Generally, policyholders must contact an insurer within a limited period of time after damage occurs. Depending on the insurer, they may be able to file a claim online or via phone.
Homeowners should provide documentation of damages resulting from a covered cause. An insurance adjuster will evaluate whether the claim is covered and how much compensation the property owner should receive. Always make sure to ask, does homeowners insurance cover foundation repair, before spending time making a claim.
