Does Homeowners Insurance Cover House Foundation Repair?

Your foundation, like any other part of your home, is covered by homeowners insurance. Many causes of foundation damage, however, are expressly excluded from standard policies.

Learn about the various events that can cause foundation damage and whether or not your homeowners policy will cover it.

When is house foundation damage covered by homeowners insurance?

Unless your policy specifically states otherwise, any damage to your foundation is covered. That may appear perplexing. To illustrate, consider two types of risk events: those that your homeowners insurance company accepts and those that it rejects. Tornadoes and fires, for example, will be covered if they cause damage to your home. Events that your company generally rejects, such as earthquakes and floods, are deemed too dangerous, and your company will not accept responsibility for the damage.

Events that are covered by most home insurance policies

To be covered by insurance, your foundation repairs must be caused by an event that your company accepts. The following are examples of events that homeowners policies typically cover that could result in foundation damage.

• Fire or lightning
• Windstorm
• Damage caused by aircraft
• Explosions
• Riots or civil disturbances
• Damage caused by vehicles
• Vandalism
• Falling objects
• Volcanic eruption
• Collapse from the weight of snow, ice or sleet
• Water damage from plumbing, heating or air conditioning overflow

If any of the aforementioned causes foundation damage, you can file a claim with your insurance company to be reimbursed for the repairs.

Events that aren't covered by most home insurers

Unfortunately, many of the most common causes of foundation damage are events that your company will not accept responsibility for. If any of the following events occurred, your insurer will almost certainly deny your claim.

• Natural settling, cracking, shrinking, bulging or expansion of the foundation
• Earthquakes or floods
• Pressure from tree roots
• Faulty construction

Floods, like earthquakes, necessitate their own insurance policies, so the cost of these repairs will not be covered by your standard homeowners policy. Natural settling, tree roots, and faulty construction are all attributed to the home's owner being negligent, and negligence is never covered by insurance.

How can your home insurance company help?

Some insurers provide policyholders with access to a network of qualified contractors. Working with these prescreened contractors ensures that your claim and repairs are handled as soon as possible. Because these contractors are usually in direct contact with your insurance company, the entire process moves much more quickly. Below is a list of some home insurance companies that have a contractor network.

What can you do if you're not covered by homeowners insurance?

When the damage to your home's foundation is not covered by insurance, you have few options other than paying out of pocket. Your best bet is to demonstrate that the damage was caused by something for which you are insured. If your foundation shifted as a result of expanding soil caused by an internal flood caused by a burst pipe rather than a natural flood, you would be covered because homeowners policies cover internal floods.

Hiring a contractor or foundation specialist is the best way to assess damage to your home's foundation. They will be able to tell you what caused the damage, which will allow you to determine whether a homeowners claim is viable. The evidence or materials presented by them can also assist you in making a case for coverage.

For future reference, if you live in an earthquake-prone state like California or a flood-prone state like Florida, you should strongly consider implementing those policies. A powerful storm or flood is likely to damage more than just your home's foundation. Given that the average flood insurance claim is $30,000, you should strongly consider purchasing additional coverage.

How to prevent foundation damage

There are also several steps you can take to protect the foundation of your home. Shifting soil is the most common cause of foundation problems. The soil beneath your house moves dynamically in response to the moisture (or lack thereof) within it. You should ensure that your home has a good water-handling system in place during heavy rains and floods so that moisture does not become trapped in your soil.

If you live in a drought-prone area, you should have a system in place to water your yard on a regular basis to ensure it retains a good level of moisture. Speak with a foundation specialist to gain a better understanding of these systems for your home.

You can also avoid future issues by scheduling a thorough home inspection before moving in. Poor construction is not covered by insurance, so you should inspect the foundation before you are held liable. If your inspector finds that the foundation was poorly constructed, you should strongly consider passing on the home.

How do you file a claim for foundation damage?

If, after consulting with a professional, you determine that the cause of the damage is something for which you are covered, you can file a homeowners claim in the same way you would for any other type of damage. Because the majority of what you are covered for are unexpected events, you should contact the professional as soon as possible after the event. For example, if it was a tornado, contact your contractor as soon as possible after the storm has passed, and then contact your insurer. If the damage was caused by vandalism, you must contact the authorities and obtain a copy of the police report.

Your homeowners insurance company will send a claims adjuster to assess the damage after you file a claim. This is where the evaluation of your contractor or foundation specialist comes into play. If the adjuster claims the damage was caused by normal wear and tear or something you are not covered for, your contractor will be able to testify on your behalf.

How much are you covered for?

You will be covered up to the policy limits. Most standard homeowners policies start around $250,000 in dwelling coverage, but your coverage limit could be higher. However, in the vast majority of cases, foundation repairs will not exceed $100,000.