Does home insurance cover foundation repair?

Does homeowners insurance cover foundation repair?

Homeowners insurance covers foundation repair when a covered peril causes the damage. Foundation damage falls under the dwelling portion (Coverage A) of your policy because the foundation is part of your home's structure. Coverage depends on the cause of the damage, the policy's exclusions, and your coverage limits.

“[Coverage] depends upon what caused the foundation problem,” says David Lervig, founder and main instructor at the Insurance School of Texas.

When will foundation repair be covered by homeowners insurance?

Your homeowners insurance covers foundation repair when a covered peril directly causes the damage. For example, damage from a fire, lightning strike, or storm is covered under the dwelling portion of your policy.

Covered perils for standard homeowners policies include:

Lightning strikes
Fires
Tornadoes
Falling trees
Bust pipes

Standard HO-3 home insurance policies are all perils, which means a peril is covered unless it’s specifically excluded. So, unless your foundation damage was caused by something specifically excluded from the policy, it should be covered.

If you put in a claim to your insurance company, you will need to show that a covered peril caused the damage.

What foundation damage isn’t covered by home insurance?

Homeowners insurance does not cover foundation damage caused by excluded causes such as normal settling, wear and tear, poor maintenance, flooding, or earthquakes. Issues that are gradual rather than the result of a sudden, accidental event are not covered by your policy, and home insurance doesn’t cover flood or earthquake damage. You can purchase flood and earthquake insurance to cover that type of damage.

Water seeping in and sewer backups aren’t covered, and neither are old trees whose roots have grown into the foundation and caused problems.

How to file a claim for foundation damage

Contact your insurance company as soon as you discover foundation damage if you believe a covered event caused it. Document the damage before making repairs, and provide your insurer with information that can help establish the cause of the problem.

Follow these steps:

Take photos and videos. Document cracks, water damage and other visible problems before making non-emergency repairs.
Contact your insurer. Report the damage and explain when and how you noticed it.
Prevent further damage. Make reasonable temporary repairs if necessary, but keep receipts for materials and services.
Prepare for an inspection. The insurer may send an adjuster to determine the cause and extent of the damage.
Provide supporting information. A contractor’s report, repair estimates, photos and other documentation can help establish the cause of the damage.

On your first phone call to your insurance carrier, ask if you should enlist a contractor to do repairs immediately or if they need to visit your home first. Sometimes, the insurance carrier has repair companies they prefer to work with; however, you can choose your own contractor.

As long as a covered peril caused your foundation damage, your claim should be approved.

How to prevent foundation damage

You can reduce the risk of foundation damage by controlling water around your home, maintaining proper drainage, and addressing small problems early. Regular maintenance can help prevent minor cracks and drainage problems from becoming expensive structural repairs.

Here are some steps you can take:

Maintain proper drainage. Proper drainage around your home, gutters and downspouts on the roof to divert rainwater keeps the area around your foundation as moisture-free as possible.
Watch nearby trees and shrubs. Be wary of trees and large shrubs close to the house, as the roots can grow into the foundation.
Check for cracks regularly. Look for new or expanding cracks in the foundation and other parts of your home.
Stay ahead of pest infestations. Pest infestations can weaken not only the foundation but all the underlying structures of your home.
Address water problems quickly. Standing water or repeated moisture around the foundation can lead to bigger problems.

Get used to inspecting your home regularly. Walk around and look at the foundation and notice any cracks or other issues. If you’re not sure exactly what to look for, you can always pay a fee to a home inspector to do a once-over on your home.

FAQ: Foundation damage

Does homeowners insurance cover termite damage to a foundation?

No, standard homeowners insurance does not cover termite damage to your foundation. Insurers consider termite infestations a maintenance issue, so you are responsible for pest treatment and repairs caused by the infestation.

Does homeowners insurance cover foundation damage from a burst pipe?

Yes, homeowners insurance covers foundation damage caused by a sudden and accidental burst pipe. Coverage applies to the resulting damage, subject to your policy terms and deductible.

Does homeowners insurance cover foundation repairs caused by tree roots?

No, standard homeowners insurance does not cover foundation damage caused by tree roots. Root growth is considered a gradual problem rather than sudden damage from a covered peril.

Does homeowners insurance cover foundation damage from settling?

No, standard homeowners insurance does not cover foundation damage caused by normal settling. Foundation settling happens gradually and is considered a maintenance or structural issue rather than sudden accidental damage.