Are Foundation Repairs Covered by Homeowner’s Insurance?

With the amount of money invested in your home, you need to feel confident knowing that you’re protected from all types of loss.

Although you may know the coverage associated with fires, floods and burglaries, do you know what type of coverage is available in case of foundation issues? Here’s what to keep in mind when it comes to foundation problems and your homeowner’s insurance.

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

Unfortunately, most foundation damage is not covered by your home insurance policy.

For example, common issues involving slight foundation shifting or general wear and tear would not normally be covered. That’s because most home insurers see this type of damage as being avoidable by completing regular foundation inspections and maintenance.

Damage caused by floods or earthquakes is typically only covered if flood insurance or earthquake insurance is purchased in addition to regular home insurance.

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.