Is My Home’s Foundation Covered by Home Insurance in Ontario?

When a homeowner in Ontario—especially in communities like Burlington—discovers a crack, leak, or shifting wall in their foundation, the first question is almost always the same:

“Is foundation repair covered by insurance?”

It’s an understandable question. Foundation repairs can be expensive, and many homeowners hope their policy will ease the financial burden. Unfortunately, the truth is more complicated than a simple yes or no. In many cases, the answer leans toward no—but there are important exceptions every Ontario homeowner should understand.

This guide breaks it all down clearly, honestly, and with the goal of helping you make informed decisions about your home and your next steps.

The Hard Truth: When Is Foundation Damage Typically Not Covered?

Before diving into the scenarios where insurance might help, it’s important to understand the most common exclusions. Most foundation problems—especially the ones that develop slowly—are not considered covered perils under a standard homeowners insurance policy.

The “Settlement and Earth Movement” Exclusion

In Ontario, insurers universally exclude damage caused by:

• Natural settlement of the home
• Soil shifting or shrinkage
• Frost heave
• Hydrostatic pressure
• General earth movement

These are all considered natural, predictable processes that occur over time, not sudden accidents. If your Burlington home develops horizontal cracks or bowing walls because of expanding clay soil or years of moisture pressure, insurers categorize that as maintenance, not an insurable event.

For more details, see the Insurance Bureau of Canada’s explanation of policy exclusions.

The Problem With “Gradual Damage”

Another major exclusion is anything classified as gradual damage. That includes:

• Long-term leakage
• Deterioration
• Wear and tear
• Repeated seepage
• Poor drainage or grading that worsens over time

If water has been slowly entering your foundation for months or years, even if you only discovered it recently, most insurance companies will deny the claim. Gradual damage is considered a homeowner’s responsibility—even though the repair may be urgent and costly.

If you are noticing these types of issues, please take the time to explore our solutions for waterproofing and crack repair.

Scenarios Where Foundation Repair Might Be Covered

While most foundation damage is excluded, there are cases where homeowners insurance can help—especially when the damage stems from a sudden and accidental event.

Sudden and Accidental Water Damage (Burst Pipe)

If a pipe bursts inside your home and the resulting water causes foundation cracks, erosion, or structural shifting, this may be considered a covered peril. Key qualifiers include:

• The event was sudden
• The damage was accidental
• The source was inside your home
• The cause wasn’t neglect or poor maintenance

This scenario is relatively rare, but it does happen.

The Importance of Sewer Backup Coverage

Many Ontario homeowners—Burlington included—add sewer backup coverage to their insurance policies. This optional endorsement protects you from damage caused by:

• Municipal sewer overloads
• Blocked sewer lines
• Failed sump pumps (in some cases)

If sewage backup causes water damage that impacts your foundation, repairs to the affected areas may be covered—though the foundation structure itself may still be excluded. Every insurer writes this differently, so reading the fine print is essential.

Overland Water Endorsements

With extreme weather becoming more common, many insurers now offer overland flood coverage that protects against:

• Overflowing rivers
• Surface water flooding
• Heavy rainfall overwhelming drainage systems

However, this is important. Overland flood coverage rarely includes structural foundation repairs, only the resulting water damage inside the home. Still, having this endorsement can be critical in places like Burlington, where severe rain events have increased in recent years.

How to Read Your Insurance Policy for Foundation Coverage

Insurance policies are notorious for dense language, but there are specific sections where you should focus your attention:

1. Covered Perils
   Look for terms like sudden and accidental, water escape, or falling object.
2. Policy Exclusions
   Search for settlement, earth movement, gradual damage, hydrostatic pressure, and seepage.
3. Endorsements and Add-Ons
   Check for water-related endorsements such as sewer backup or overland flooding.
4. Definitions Section
   Many misunderstandings come from insurance-specific definitions that differ from everyday language.

If you’re unsure, call your provider and ask directly whether your policy covers structural foundation repairs. The answer is often clearer when communicated verbally.

What to Do if You Suspect You Have a Covered Claim

If you believe your foundation issue was caused by a covered peril:

1. Document Everything
   Take photos, videos, and notes immediately.
2. Prevent Further Damage
   Insurers can deny claims if you don’t take reasonable steps to stop ongoing damage.
3. Call Your Insurance Provider
   Explain the situation and ask to open a claim.
4. Get a Professional Foundation Inspection
   Insurers often require expert documentation to confirm the cause of damage.
5. Contact a Foundation Repair Company
   Even if your insurance covers part of the repairs, you’ll need a permanent solution.

If you’re in Burlington or the surrounding region, Conterra provides detailed inspections and honest assessments geared toward helping you understand the exact cause of your foundation problem.

Investing in Prevention: The Best Insurance Policy

Home insurance is rarely your financial safety net for foundation repairs. That means prevention isn’t just smart—it’s essential.

The best preventive steps include:

• Maintaining proper grading around your home
• Installing (and maintaining) a sump pump
• Ensuring eavestroughs and downspouts are clean and properly extended
• Sealing foundation cracks early
• Waterproofing vulnerable walls
• Improving drainage systems

Taking these steps can save you thousands of dollars in future repair costs.

FAQs

Final Thoughts: Honesty Builds Trust

Homeowners across Ontario—and especially in growing cities like Burlington—deserve clear, honest answers about insurance coverage for their home’s foundation.

While the answer is often disappointing, transparency matters. Insurance rarely covers foundation repairs—but understanding your policy can prevent surprises.

If you’ve discovered a crack, leak, or shifting wall, Conterra Foundation and Repair can help you understand the cause and provide a permanent solution.

Contact us today to schedule a professional inspection and get a quote for a long-lasting repair that will help protect your home for decades.