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Is the Foundation of My House Covered Under Home Insurance?

Foundation of a Texan House © Wikimedia

Repairing house damages can be quite costly to repair. The price of home renovations can cost you anywhere between $700 up to $40,000. Thank goodness for home insurance right? With the right kind of homeowners insurance, you’d be able to shed off a few hundred or thousand dollars on home renovations.

Unfortunately, homeowners insurance cannot cover all types of house damages. One type of house damage that can be quite tricky to file an insurance claim for is foundation damage.  You see, insurance providers usually have a different set of rules that determine whether your foundation damage can be covered or not. For example, if your foundation damage was caused by a slab leak, your insurance claim will most likely be accepted. On the other hand, if the damage was caused by faulty construction, you may not be able to get financial support from your home insurer. 

To fully understand what types of damages your homeowners insurance covers, let us first briefly discuss how home insurance coverage works. 

When it comes to identifying what kind of damages are covered by your home insurance, you need to determine the root cause of the damages first. You see, most insurance providers only choose to provide coverage for low-risk events. Some low-risk events usually covered by insurance include:

  • Civil disturbances
  • Collapse weight caused by ice, snow, or sleet
  • Damage caused by aircraft
  • Damage caused by vehicles
  • Explosions
  • Falling objects
  • Fire
  • Lightning
  • Riots
  • Vandalism
  • Volcanic eruption
  • Water damage caused by heating, plumbing, A.C. overflow
  • Windstorm

If your foundation damage was caused by any of the events listed above, your home insurance policy will cover your foundation repairs. On the other hand, if your foundation damage was caused by risky events, your insurance claim will have a high chance of being rejected. Some risky events that homeowners insurance will not cover include:

  • Natural cracking, bulging, expansion, settling, or shrinking of the foundation
  • Earthquakes
  • Flood
  • Pressure caused by tree roots
  • Faulty construction

Though standard home insurance policies don’t usually cover damages caused by the risky events listed above, this doesn’t mean you’d have to face such events without insurance. There are other types of homeowners insurance that deals with damages caused by riskier events

Types of Insurance Coverage for Foundation Repair

1. Earth Movement Coverage

This type of coverage will protect you against foundation damages caused by movement in the soil. This is highly recommended for people with homes in locations where earthquakes frequently occur. 

2. Flood insurance

This type of coverage is ideal for homes located in areas prone to flooding. It will protect you from any sort of water damage to your home.

3. Ground cover collapse coverage

This type of coverage is best for people who live in areas where sinkholes are usual. You would be able to use it to get coverage for damaged foundation caused by sinkholes.

How to File a Claim for a Damaged Home Foundation

Before you file an insurance claim for your damaged foundation, the first thing you should do is consult a professional. Try calling your contractor so you can find out the actual cause of your foundation damage. This will help you make a solid insurance claim that can get a higher chance of approval. 

To avoid any complication, try to call your contractor as soon as possible once you’ve spotted your foundation damage. After doing so, contact your insurance provider without delay. If there’s a chance the foundation damage was caused by vandalism, you should also call the police for an official police report. 

Once you’ve filed your claim, your home insurance provider will have a claims adjuster assess the damage of your foundation. This is where your contractor’s professional input will be useful. Your contractor can help you prove that your foundation damage is caused by an event covered by your homeowners insurance provider. 

What to Do if Your Foundation Repair Doesn’t Get Covered?

If your homeowner's insurance policy doesn’t cover your foundation damage, you don’t really have many options to choose from. You’d either need to pay for the repairs with your own money or provided that the damages were caused by events covered by your home insurance.

Your best bet is to ask for a professional consultation from a contractor. Once the contractor has helped you figure out the root cause of your foundation damage, you’d be able to gain a firm idea whether your home insurance claim would be accepted or not. 

If your contractor finds the damage to your home is caused by an event not covered by your home insurance, you can try several modes of payment for repairs for financial relief. Some things you may try include taking a second mortgage on your home for repair funds and setting up a monthly payment plan with your contractor.

In Conclusion

So to sum everything up, there’s no single answer to the question “Does Homeowners Insurance Cover House Foundation Repair?” This question can be answered by a yes and a no. Remember, the key to finding out whether your foundation damages or any sort of damage to your home, would be covered by your home insurance is getting to the root cause of the damage. 

If the root cause of the damage to your home is covered by your home insurance policy, then you may expect the cost of your house repairs to be reimbursed by your insurance provider. On the other hand, if the damages to your house were caused by risky events that aren’t covered by your home insurance provider (earthquakes, sinkholes, soil movement, etc.), your insurance claim will most likely be rejected. 

For best results and fewer complications, your next course of action when it comes to dealing with house damage is consulting a contractor. A contractor will help you identify the root cause of the damage to your home, therefore allowing you to determine if the damage can be covered by your insurance. Contractors can also help you figure out how much your repairs will cost. 

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