Are Foundation Repairs Covered by Homeowner’s Insurance?

Wear and tear of your foundation (such as soil shifting and causing cracks) is typically not covered by home insurance. However storm damage or flood damage might be covered depending on your policy, insurance provider and if you have signed up for that particular coverage. Events that may have caused foundation damage, such as a fire, explosion, or perhaps a car veering off the road and crashing into your home may be covered.

Be certain to read your fine print. In a lot of instances, you’ll need to be proactive in these situations to get proper coverage. For example, for storm damage you might be required to have a battery backup sump pump, in case you experience a power outage during a storm. Furthermore, for flood damage, your provider may not provide you coverage they access most of the water came in through cracks in your foundation that should have been fixed years ago.

With weather patterns getting more volatile in Canada, flood insurance is becoming more popular, we’ve had several flash floods in downtown Hamilton and Dundas this past decade, as well as in Burlington where many homes are located along Lake Ontario.

Types of Foundation Damage

Although a home’s foundation plays a pivotal role in keeping a home upright, strong and dry, many homeowners don’t even consider it until a structural issue appears.

And when it appears, it’s never good.

Whether it’s cracking, sinking/subsiding or showing other types of damage, a foundation issue can lead to extensive structural damage and costly repairs.

Poor construction is one leading cause of foundation damage. If the soil isn’t allowed to settle properly before beginning construction or if an inferior product is used, there could be foundation problems in the future. Have a home inspection completed to save yourself stress and money by identifying these potential problems prior to taking ownership.

Other times, forces of nature cause foundation problems. Tree roots can actually crack your home’s pipes and cause severe foundation damage, whereas earthquakes, soil erosion and other types of earth movement can create other foundation issues.

Homeowner’s Insurance and Foundation Damage

Because of the seriousness of foundation damage, it’s crucial that you act fast when you notice foundation damage. Depending on how severe the damage is, the repair costs can quickly add up – forcing you to turn to your homeowner’s insurance for help. But before you seek out aid from your home insurance provider, you need to figure out for sure what’s causing your foundation damage. Consulting with a foundation expert provides these answers.

When Foundation Issues Won’t Be Covered

Generally, most standard homeowners insurance policies in Ontario do not cover the majority of foundation damage. For instance, common issues like minor foundation settling or gradual wear and tear are usually excluded. Insurers often view this type of damage as something that can be prevented through regular foundation inspections and maintenance.

Furthermore, damage resulting from events like floods or earthquakes typically requires specific additional coverage (flood insurance or earthquake insurance) beyond a standard Ontario home insurance policy.

When You May Be Covered

Of course, there are always exceptions.

If your foundation damage occurred because of other issues (such as broken plumbing, a tornado, an explosion or a fire), your policy may reimburse you for the repairs – up to your coverage limits.

Check your specific policy’s declarations page to see what perils are listed.

Check Your Home’s Warranty

Although your home insurance won’t cover foundation damage caused by defective construction, your home’s warranty may. Many homes that are less than ten years old have a foundation warranty offered through the home builder. If your home is relatively new, read your warranty over carefully to find out the specifics.

If you’ve noticed foundation damage in your home, consult with a foundation expert right away. At Conterra Foundation, you can trust us to get to the bottom of your foundation problem – and fast.