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Does Homeowners Insurance Cover Foundation Repair?

Crawl Space Basement

Foundation problems are a nightmare for most homeowners. Repairing your foundation can cost thousands of dollars and be a major inconvenience at the same time. If you are a homeowner facing foundation problems, you are probably looking for ways to make the cost more affordable as a result.

Does homeowners insurance cover foundation repair? Unfortunately, the answer to this question is a difficult one. The answer ultimately depends on what is wrong with your foundation, why it is damaged, and what policy you have.

For a complete breakdown of when homeowners insurance covers foundation repair, keep reading.

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When Does Homeowners Insurance Cover Structural Damage?

Foundation problems are typically considered structural damage, though there are other types of structural damage as well. Homeowners insurance will cover structural foundation damage, but the damage must be caused by a covered situation.

In other words, structural damage is covered by your homeowners insurance if the situation that caused the damage is covered by your insurance. Some common examples of when structural damage is covered are whenever that damage is caused by fire, vandalism, storms, or explosions.

That being said, it’s important to read up on your homeowners insurance policy. Each policy will specifically list out covered situations. By looking at your policy, you will be able to determine the situations that are covered by your insurance.

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Image Credit: Vitalii Vodolazskyi, Shutterstock

Does Homeowners Insurance Cover Leaks Under Foundation?

If you find leaks under your foundation, your homeowners insurance may cover the repair. The cause of the leak is what will determine whether or not the fix is covered. As a result, there are times when homeowners insurance will cover leaks under the foundation, but there are other times when it will not.

Yes, When…

If the leak under your foundation is caused by a situation covered by your homeowners insurance, then your insurance will cover the leak. For example, most homeowners insurance policies cover leaks and water damage caused by damage or overflow in your plumbing, AC, or heating system.

No, When…

Not all leaks are covered by homeowners insurance. If the leak is caused by a situation not covered by your policy, then your insurance will not cover their repair or fix. For instance, most homeowners insurance policies exclude leaks that are related to floods. You will need flood insurance specifically for these leaks.

Are Cracks in Foundation Covered by Insurance?

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Image Credit: Shutter_M, Shutterstock

If you find cracks in your foundation, it’s important to fix the problem right away. If the crack was caused by a situation covered by your policy, then your insurance will fix the cracks. If not, you will have to front the cost yourself.

Yes, When…

Once again, cracks in the foundation are covered by insurance whenever the cause of the crack is caused by a covered scenario. Some common scenarios that are covered by homeowners insurance include a vehicle driving through your home, aircraft going through your home, fire, water damage, or explosions.

No, When…

Not all foundation cracks are covered by insurance. If the crack is caused by a situation not covered by your insurance, then the crack itself is not covered. For example, most policies exclude damage related to earthquakes. If the crack in your foundation is caused by an earthquake, then the crack is most likely not covered.

Read Through Your Policy

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Image Credit: VisionPics, Pixabay

For all of the situations described above, the foundation damage is only covered by your homeowners insurance if the damage was caused by a situation that is explicitly outlined in your insurance policy. For this reason, you will want to read up on your homeowners insurance policy to learn what is covered. Your policy will specifically outline what is covered and what is not.

If you do not understand your policy or need help understanding its specifics, contact the company that issued the policy. A representative will be able to fully explain what your policy covers. It’s a good idea to do this before foundation problems arise so you aren’t scrambling for answers whenever problems pop up.

house dividerFinal Thoughts

Homeowners insurance can cover foundation repair, but it ultimately depends on your policy and what has caused the foundation.

If the damage was caused by a situation covered in your policy, then homeowners insurance will cover their repair. However, some foundation damage is caused by scenarios not covered by homeowners insurance. Consequently, the homeowners insurance will not cover the damage if the damage is caused by something not covered.

Because your policy determines what is covered, read up on your policy and its specifics. Your policy will give you exact answers about what is covered and what is not.


Featured Image Credit: grandbrothers, Shutterstock

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