Do Homeowners Cover Foundation Issues?

Mortgages, property taxes, utilities, and other expenses are just some of the costs that make homeownership a challenging endeavor. One more cost to consider is your home's foundation. 

Most people don't know about their homes' hidden risks until it's too late. It may seem obvious that a leaky roof or an old furnace should be repaired or replaced, but the same can't be said of a home's foundation.

This is because the foundation is out of sight and, therefore, out of mind for many homeowners. As a result, they often fail to notice small cracks or other signs of problems until the damage has become significant.
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At this point, they may be faced with expensive repairs that are not covered by their applicable insurance policy. So, what exactly does home insurance cover when it comes to foundation problems? Read on to find out.

Does Home Insurance Cover Foundation Repair?

Most homeowners insurance cover foundation repairs if the cause is something other than wear and tear.

For example, if your foundation cracks because of a tree falling on your house, your policy will cover the repairs. But if the foundation cracks because of settling or water damage, you're usually out of luck.

However, if the damage is due to settling or other factors that are not covered by your policy, you will be responsible for the cost of repairs. And it can be very costly. It's essential to keep in mind that most home insurance policies have a deductible, so you will need to pay this amount before your coverage kicks in.

In this situation, it is important to consult with a foundation specialist or foundation repair contractor to estimate the cost of repairs. This will help you determine whether it is worth filing a claim with your insurer. Moreover, you will get solid evidence in the form of a foundation inspection report to back up your claim if you do decide to file.
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There are some other inclusion and exclusion that you should know about when it comes to home insurance and foundation damage.

Instances When Foundation Repair Will be Covered by Home Insurance 

As we mentioned, home insurance will generally cover damage to your foundation if it is caused by a covered event, such as a severe storm. Other events that are typically covered by home insurance include:

• Fire
• Windstorms
• Hail
• Falling objects
• Lightning
• Explosion
• ​Vandalism

​Unlike the common wear and tear, these events are sudden and usually not preventable. So, if your foundation is damaged as a result of one of these events, you can file a claim with your home insurance company.

Instances When Foundation Repair Won't Be Covered by Home Insurance 

Now that we've covered when home insurance will cover foundation repair let's take a look at some of the instances when it won't. 

As we mentioned earlier, home insurance policies typically don't cover damage caused by settling or water damage. Other foundation problems that are not covered by home insurance include:

• Poor workmanship
• ​Improper installation
• Design defects
• Structural problems
• ​Soil erosion

It's important to note that insurance will not be covered in areas where disasters and earthquakes are common because it is uninsurable. For example, if your home is located in a high-risk area for earthquakes, you will not be able to get earthquake insurance.
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This is why it's so important to be aware of your home's risks. If you live in an area where foundation damage is common, you should have to buy separate insurance to cover this type of damage.

How to Prevent Foundation Damage?

The best way to deal with foundation damage is to prevent it from happening in the first place. There are a few things you can do to reduce the risk of foundation problems, such as:
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1. Inspect your foundation regularly (call a pro if necessary)
2. Fix any cracks or other damage promptly
3. Divert water away from your foundation
4. Keep gutters and downspouts clean
5. Make sure your landscaping slopes away from your foundation
6. Add extra support to your foundation if necessary

If you take these preventive measures, you can reduce the risk of foundation damage. And if damage does occur, you will be more likely to have it covered by insurance.

Conclusion 

Do homeowners cover foundation issues? Foundation damage is a severe issue that can be costly to repair. Homeowners insurance policy will generally cover foundation damage caused by a covered event, such as a severe storm not faulty construction. However, home insurance typically does not cover damage caused by settling or water damage.
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So, it's important to be aware of your home's risks and take measures to prevent foundation damage. If you do experience foundation damage, be sure to consult with a professional contractor to estimate the cost of repairs.

Author

David is the lead content editor at RVA Paving Pros, a service for Richmond VA residents. In his spare time, David likes to travel, read about business and visit the finest italian restaurants in town!