Houses need a strong foundation to keep ground water out, provide insulation and protect against natural earth movement. So as a homeowner, discovering a problem with your home’s foundation can be incredibly frustrating. Foundation issues can range from inexpensive, quick fixes, to major repair projects with a high price tag. The good news is, home insurance covers your house’s foundation against specific risks. But keep in mind that some causes of damage are not covered, including general wear and tear that is common with older home foundations. If you’re concerned about foundation damage, learn what your home insurance will cover, how to spot foundation damage and how to prevent foundation damage in the first place. Show
Does home insurance cover repairs to your foundation?Homeowners insurance does cover foundation repairs, but it depends on the situation. To figure out if your home insurance policy will cover your foundation, you need to determine what caused the trouble you’re having. In some cases, it will be obvious, like damage from a tornado or earthquake. However, the root cause of your foundation problem might not be readily apparent. In these cases, it helps to call a foundation specialist to come out to your house and diagnose the issue. Not only will they help you understand what caused the problem, but they can give you an idea of how extensive repairs will need to be. Plus, their report will give you evidence you can use if you decide to file a home insurance claim. Some of the most common causes of foundation issues include:
When your insurance policy will cover foundation damageAll standard home insurance policies include dwelling coverage, which is the portion of your policy that covers the physical structure of your home, attached structures and your foundation. HO-3 and HO-5 home insurance policies (the most common types of coverage) provide dwelling coverage on an open perils basis, which means any loss that is not explicitly excluded from your policy is covered. Most home insurance policies will help with foundation repairs after covered perils like:
However, it’s still important to read through your policy to figure out which covered perils are included. If any of those things are to blame for your foundation damage then you have a high likelihood of filing a successful home insurance claim. When your policy will not cover foundation damageAlthough home insurance does cover many sources of foundation damage, not everything is covered. For instance, some people assume that they get homeowners foundation protection from their insurer after any natural disaster. But that’s not the case. In fact, almost all home policies specifically exclude two of the natural disasters that can do the most foundation damage: floods and earthquakes. If you live in an area where either of these disasters is common, buy a separate earthquake or flood insurance policy to safeguard both your foundation and your home as a whole. Additionally, home policies don’t offer foundation repair insurance when the foundation problem results from normal wear-and-tear. This is because most policy Insuring Agreements only provide coverage for “sudden and accidental loss” or “Direct Physical Loss,” which has been defined as damage caused by an accident or other fortuitous event. Insurers argue that it’s your responsibility as a homeowner to perform the proper maintenance on your home. They label many foundation issues as negligence on your part. Specifically, you can expect that your insurer will deny coverage for settling, shifting and cracking foundations, whether that’s a result of temperature, soil fluctuations, earth movement or tree root growth. They will almost definitely say those losses are not “sudden and accidental” and that it’s your responsibility as a homeowner to address those problems as part of your routine maintenance. Also, don’t expect foundation insurance from your homeowners policy if your foundation suffers from faulty construction. To avoid this issue — and the associated out-of-pocket cost — make sure you get a home inspection before buying a new home. What to do if you experience foundation damageIf your home’s foundation is damaged in a covered peril, you should get in touch with your insurer as quickly as possible after a covered peril occurs. Most insurers only offer coverage for a set period of time after an event occurs. When you contact your insurer, ask them what evidence it will need for the claims process. For your own records, you should take photos and videos to document the damage when it’s safe to do so. After filing the claim, your insurance company might want to send an appraiser to your property to see the damage in person. You may also benefit from hiring your own foundation specialist to come out and assess the situation so you can use their report in your claim. Like any other insurance claim, filing a successful homeowners foundation claim comes down to meeting your insurer’s requirements. Don’t hesitate to ask them questions if you’re unsure about any steps in the process. To help you with the process, many insurers have a network of recommended contractors. And some even guarantee the workmanship for a set period of time when you choose one of their contractors. Some insurers that offer this service include:
How to prevent foundation damageWhile your home insurance policy might offer you foundation insurance, it’s a whole lot easier to avoid an issue in the first place. Here are our top tips for preventing homeowners foundation issues:
Foundation damage warning signsAny of these warning signs could indicate you have foundation damage and warrant further investigation to avoid further damage to your home:
It is best to repair a foundation when it first begins to crack because foundation repairs are easier to make when there is a small crack rather than multiple repairs to be made. Ignoring foundation problems can lead to major structural problems for your home. Sagging floors can even become dangerous. Foundation repairs require flooring to be removed for a repairman to dig underneath the flooring to make the repair. The more cracks there are, the more flooring has to be removed, and the more extensive (and expensive) the repair becomes. The longer the problem is ignored, the worse it becomes. Frequently asked questionsDoes insurance cover foundation issues in Texas?Yes, in the state of Texas, homeowners receive protection against foundation issues through their homeowners insurance policies.
Is there insurance to cover foundation issues?Your foundation is covered by homeowners insurance like any other part of your home. However, many causes of foundation damage are explicitly excluded from standard policies.
How much does foundation repair cost in Texas?Foundation Cracks: This depends on the underlying issue. Low-range solutions would be $400-$800. But if the underlying problem is more complex, the cost will look much different. Foundation Leak Repair: Depending on what kind of drainage system is needed, the price can range from $2500-$6000.
Is settling of a foundation covered on homeowners insurance?Foundation damage caused by shifting or settling earth or sagging floors caused by rotting floor joists are typically not covered by homeowners insurance. If the damage is caused by flooding or an earthquake, you'll typically require separate coverage.
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