Does a Home Warranty Cover Foundation Repair?

Home warranties cover appliances and systems, so you might have to look elsewhere for foundation repair coverage, even if the damage was caused by a covered system or appliance

A digital collage showing a trowel and falling gold coins entering a crack in a blue surface, representing the high cost of foundation repairs and whether home warranties cover them.

Some or all of the mortgage lenders featured on our site are advertising partners of NerdWallet, but this does not influence our evaluations, lender star ratings or the order in which lenders are listed on the page. Our opinions are our own. Here is a list of our partners.

Updated May 4, 2026 · 2 min read

Written by

Contributing Writer

+ more

Edited by

Lead Writer & Content Strategist

SOME CARD INFO MAY BE OUTDATED

This page includes information about these cards, currently unavailable on NerdWallet. The information has been collected by NerdWallet and has not been provided or reviewed by the card issuer.

Home warranties generally don’t cover foundation repairs. These service contracts tend to cover only major appliances and systems, such as dishwashers and HVAC systems.

Home warranties don’t cover structural parts of your home. Because your home’s foundation supports your house’s weight against the soil to keep it from sinking or shifting, it's considered a structural component.

Alternatives that may cover foundation issues include builder’s warranties for new homes and homeowners insurance.

» MORE: What’s the difference between a home warranty and home insurance?

When a covered appliance or system damages the foundation

Sometimes the cause of foundation damage is a problem that a home warranty usually covers, such as plumbing issues. In this case, the foundation damage is considered secondary damage because it was a result of a different problem. Most home warranty companies won’t pay for secondary damage that results from a covered issue.

For example, some home warranties cover sprinkler systems. Let's say you have coverage for a sprinkler system and there's a covered failure that damages your foundation. A home warranty is unlikely to pay to repair the foundation — it’ll only pay to repair the irrigation system.

» MORE: Ways to cover the cost of emergency home repairs

So who pays for foundation repairs?

Even though home warranties won’t cover foundation issues, your problem might be covered by a builder’s warranty or homeowners insurance.

A builder’s warranty — also called a structural warranty — repairs certain issues with or defects of a builder’s materials or workmanship. This type of warranty can cover your home for up to 10 years and might cover foundation issues related to soil movement and erosion. You usually only get a builder’s warranty when you are the first occupant of a house or it transfers to you when you purchase a home that’s still under warranty.

Homeowners insurance usually kicks in when your home experiences a covered event, such as a natural disaster, a fire, a tree falling on your home, or a flood resulting from a burst pipe. If your foundation damage is due to a covered event, your homeowners insurance policy might pay to repair it.

If the foundation damage is caused by an issue that happened over time, such as tree roots pushing against the structure or lack of maintenance, homeowners insurance is unlikely to cover the repair.

Situation	Home warranty	Builder's warranty	Homeowners insurance
Secondary damage caused by an otherwise covered repair	X	X	✓*
Damage related to the home’s construction occurring during the first 10 years	X	✓	X
Damage caused by a sudden peril such as a tree falling on your home	X	X	✓
*In some cases, homeowners insurance might pay for foundation repair caused by situations that might be covered by a home warranty, such as a pipe bursting.

	Best for inclusive coverage
1-800-388-1918 Call First Premier	(877) 354-1408 Call American Home Shield	(833) 746-8170 Call Select Home Warranty
Limited-Time Deal: Up to $200 off For a limited time GET STARTED on First Premier Home Warranty 's website	Limited-Time Deal: Up To U$150 Off All Plans For a limited time GET STARTED on American Home Shield's website	Limited-Time Deal: $150 off any plan For a limited time GET STARTED on Select Home Warranty's website
Monthly fees $39.99-$47.99 Based on quotes collected in March 2026.	Monthly fees $20 and up Based on quotes without discounts collected in August 2025.	Monthly fees $60 and up Based on quotes collected in June 2025.
Service fees $75 per claim	Service fees $100 or $125 per claim	Service fees $75-$100 per claim
Plan types Comprehensive	Plan types Systems-only and comprehensive	Plan types Appliance-only, systems-only and comprehensive

FAQs

How much do foundation repairs cost?

The cost to repair a foundation averages $5,175 — or between just over $2,200 to around $8,100 — depending on what type of repair you need, the size of your home, soil stability and the severity of the issue.

Do home warranties cover structural issues?

Home warranty plans don’t generally cover structural problems. These service plans focus on issues in a home’s systems and appliances that happen due to normal wear and tear.

Which insurance covers foundation repairs?

A builder’s warranty may cover foundation repairs for issues caused by improper workmanship, house settling, soil erosion, or faulty materials if you’re the first owner of a new home or buying a newer home with a transferable warranty.

For sudden foundation problems that happen because of covered perils, such as falling trees or storms, your homeowner’s insurance may cover the cost of repairs, minus your deductible.