Does insurance cover foundation repair

Homeowners insurance generally does not cover foundation repair. The standard policy excludes earth movement, settling, cracking and shrinkage, which is most of what causes foundation problems.

There are real exceptions, and they are worth knowing precisely, because "not covered" is the default answer and it is not always the correct one.

What is usually excluded

• Settling, cracking, shrinking, bulging or expansion of foundations, walls, floors and roofs. This is standard exclusion language and it covers the ordinary case.
• Earth movement: earthquakes, landslides, mudflow, subsidence and sinkholes, unless separately endorsed.
• Water damage from below: flooding, surface water, groundwater and hydrostatic pressure. This is the flood exclusion and it is why a wet basement is normally not covered.
• Poor maintenance, gradual deterioration and construction defects.
• Tree roots, in most policies.
• Expansive soil, specifically named in many.

What is sometimes covered

A plumbing leak under the slab that caused the damage. Many policies cover the resulting damage from a sudden accidental discharge of water, and often the cost of access, meaning breaking and repairing the concrete, even where the pipe itself is excluded. This is the most commonly successful foundation-related claim and it is worth pursuing properly.

Damage from a covered peril: a fire, an explosion, a vehicle hitting the house, or a tree falling on it.

Sinkholes, where the state requires coverage. Florida requires catastrophic ground cover collapse coverage and offers sinkhole coverage as an endorsement; Tennessee requires it to be offered.

Earthquake damage, with a separate policy or endorsement.

Sudden collapse, under the collapse provisions in some policies, which is narrower than it sounds and generally requires an actual collapse rather than a risk of one.

Making the claim properly

If there is any prospect of coverage:

Document before you touch anything. Photographs, dates, measurements of every crack with a scale in frame.

Establish the cause with an independent expert, not the contractor bidding the repair. A structural engineer's report at $400 to $1,500 attributing the damage to a covered cause is the document that decides a claim.

If a plumbing leak is suspected, get a leak detection and a camera survey, $150 to $900, and get it in writing. Cause matters more than damage here.

Report promptly. Late notice is a common denial reason.

Read the actual policy, not a summary. The exclusions and the exceptions to exclusions are where the answer is, and they are frequently three pages apart.

Appeal a denial with the engineer's report if the stated reason is factually wrong. Many first denials are based on an adjuster's assumption about cause.

What to do instead

Since the ordinary case is not covered, the money is better spent preventing it. All of these cost less than a deductible:

• Downspout extensions carrying roof water six to ten feet away
• Grade falling six inches over the first ten feet
• Gutters that work
• Fixing a plumbing leak the moment the meter suggests one
• Watering foundations in expansive clay regions during drought, which sounds strange and is the standard local recommendation
• Keeping large trees at a sensible distance

Separate policies worth knowing about: flood insurance through the NFIP or private carriers, which is the only way to cover flood water and is required in flood zones; earthquake coverage in seismic states; and service line endorsements at $30 to $80 a year, which cover buried water and sewer lines.

Frequently asked questions

My foundation cracked after heavy rain. Is that covered?

Almost certainly not. Water from rain, surface water and hydrostatic pressure are the core exclusions. The exception would be if a covered event, such as a burst supply pipe, was the actual cause.

Does a home warranty cover it?

Home warranty products cover systems and appliances, not the structure. Foundations are excluded essentially universally.

What about a new build?

The builder's warranty typically covers structural defects for up to ten years, depending on state law and the warranty terms. That is a claim against the builder or the warranty company rather than your insurer, and it has its own notice deadlines.

Should I tell my insurer about a repair?

Repairs generally do not need reporting, and they do need disclosing when you sell. Keep the engineer's report, the contractor's scope and the warranty together; that package is what reassures a buyer.

Will a claim raise my premium?

A denied claim still appears in the industry claims database and can affect pricing and renewals. That is a reason to establish the cause before filing rather than filing to find out.