Nerdy takeaways
- Home insurance typically pays for foundation damage only if it’s caused by a sudden and accidental event.
- You’ll need separate coverage for damage that stems from flooding or an earthquake.
- Damage from wear and tear, lack of maintenance or poor construction is rarely covered.
Home insurance will generally pay for repairs to a home’s foundation only if both of these conditions apply:
- The damage was caused by an event your policy covers. Your policy booklet will typically have a long list of scenarios that aren’t covered.
- The damage was sudden and accidental. If the foundation issue developed gradually or could have been avoided with proper home maintenance, your insurance company probably won’t cover it.
Your home’s foundation is insured by the dwelling coverage portion of your policy, also known as Coverage A. Dwelling coverage is the part of your policy that insures the home’s structure. It normally covers the house’s foundation, roof, frame, chimney, permanent fixtures and appliances, and attached structures, like a porch or garage.
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Standard homeowners insurance often covers foundation damage if it’s caused by one of the following events:
- Fire or lightning.
- Windstorm or hail.
- Explosion.
- A motor vehicle or aircraft crash.
- Vandalism.
- Volcanic eruption.
- A falling object, like a tree or power pole.
- Accidental water or steam discharge from a plumbing system, air conditioner or home appliance.
Figuring out what your home insurance policy covers isn’t always straightforward.
Take a burst pipe, for example. If the pipe suddenly burst in your home and damaged your home’s foundation, your insurance company would likely pay for repairs. But if the pipe had been leaking for a while and you didn’t fix it, your insurer might not pay for the damage because it wasn’t sudden or accidental.
Foundation damage from severe weather can also be tricky to untangle. Say a tornado blows through. If extreme winds knock a tree onto your roof and the resulting damage reaches your foundation, it might be covered. But if heavy rainfall accompanying a tornado floods your yard and causes your foundation to shift, you’re probably out of luck. Most homeowners policies won’t cover flooding.
When home insurance won’t cover foundation damage
If the foundation damage wasn’t caused by a covered peril and didn’t stem from a sudden and accidental event, your homeowners policy probably won’t pay out.
Here are some common reasons a standard home insurance policy typically wouldn’t cover foundation damage:
- It was caused by flooding or an earthquake. Most standard home insurance doesn’t cover floods or earthquakes, two common causes of foundation damage. If you live in an area that’s vulnerable to these extreme weather events, you may need to buy flood insurance or earthquake insurance.
- The issue is the result of normal wear and tear. Some foundation issues, like settling of the earth or small cracks, develop gradually. These problems are considered normal wear and tear and wouldn’t be covered by most home insurance.
- Faulty construction is to blame. Insurers usually won’t cover damage due to poor construction, which is why it’s essential to have a thorough home inspection if you’re buying a house.
Does home insurance cover foundation cracks?
Homeowners insurance doesn’t usually cover foundation cracks. The key words to remember are “sudden and accidental.” Cracks are a common early warning sign of foundational issues. Culprits can include water erosion, soil issues and faulty construction. All of these problems are usually addressed through basic home maintenance and repairs, which home insurance typically doesn’t cover.
What causes foundation damage?
Foundation damage can have many underlying causes, including:
- Water buildup and drainage issues. Excessive water that accumulates under the home’s foundation can wash away the underlying land, causing the foundation to move.
- Natural disasters. Natural disasters like earthquakes, floods and wildfires can damage your home’s foundation.
- Faulty construction. Uneven slabs, loose soil, concrete issues and shoddy building materials can all lead to foundation problems.
- Pests. Termites, carpenter ants, rodents and burrowing animals (like groundhogs and moles) could compromise your foundation.
- Prolonged drought. An extended dry period can cause the foundation to “settle” or gradually sink into the ground.
- Tree roots. If a tree is planted too close to your home, it could cause foundation problems, particularly if it has a shallow root system, like an oak or elm tree.
Insurance won’t cover most of these scenarios. However, many are preventable with proper home maintenance. For example, cutting tree roots or installing root barriers, promptly fixing leaks and installing a solid drainage system can keep your home from developing foundation issues.
How to file a claim for foundation repair
Before you file a claim for foundation damage, make sure it’s worth it. Filing a claim can make your premiums go up, even if it’s denied.
Foundation damage is covered only in limited circumstances, so it’s crucial to confirm the cause of the damage. Review your policy documents to make sure you understand your coverage details.
Next, look at your home insurance deductible. Your deductible is the amount you pay before insurance kicks in. If the repair would cost less than the deductible, filing a claim won’t be worth it.
Say your deductible is $1,000. The average cost of foundation repairs ranges from around $2,200 to $8,100. On the high end of that range, an insurance claim could end up paying out $7,100. On the low end, your potential payout is $1,200.
If you decide to file a claim, don’t delay. You may have a limited time frame, depending on your state. Take photos and videos to document the damage. When you contact your insurance company or agent, be prepared to provide a full explanation of the damage and how it occurred.
Warning signs of foundation damage
Here are some signs of foundation damage to look out for:
- Uneven floors.
- Leaning walls.
- Doors and windows that don’t open and close properly.
- Cracks in doors, windows or walls.
- Moisture in the basement or garage.
If you spot any of these, contact a building inspector immediately. While some signs of foundation damage will be easy to spot, others are less visible to the untrained eye. If you’re concerned that your home could develop foundation issues, it may be worth hiring a professional for regular inspections to catch issues early before they become a costlier problem.
A previous version of this story had an inaccurate list of scenarios in which foundation damage would be covered. It has been corrected.
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