Jeffrey Wade
Whether or not AAA homeowners insurance covers foundation repair depends on the cause of the damage. Standard home insurance policies do not cover foundation damage caused by floods or earthquakes, which may require separate insurance policies. Foundation issues due to damage over time, wear and tear, faulty construction, settling, insects, or other excluded perils are typically not covered. However, if the damage is caused by a covered peril, such as a fire, tornado, or falling tree, your insurance company may cover the repair costs. It is important to review your specific policy to understand what is covered and what is not.
| Characteristics | Values |
|---|---|
| Whether AAA homeowners insurance covers foundation repair | Depends on the cause of the damage |
| Types of damage covered | Fire, smoke, wind, hail, lightning, water damage, tornado, burst pipes, falling trees |
| Types of damage not covered | Wear and tear, neglect, faulty construction, settling, insects, rodents, tree roots, flooding, earthquake, water backup, windstorm, wildfire |
| Preventative measures | Maintaining soil moisture, trimming plants near the foundation, maintaining gutters and downspouts, proper drainage, avoiding large trees or bushes near the house |
| Claim process | Take photo and video records, contact the insurance agent, get a claims adjuster to assess the damage, hire a contractor |
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What You'll Learn
Home insurance coverage depends on the cause of damage
Home insurance coverage depends on the cause of the damage. If the damage is caused by a peril covered by your policy, you will likely be reimbursed for repairs. However, if the cause of the damage is excluded from your policy, you will probably need to pay out of pocket.
Standard home insurance policies typically cover damages to your home's foundation resulting from fires, tornados, and other natural disasters. For example, if a tree falls on your home due to strong winds, your insurance will likely cover the cost of repairs. On the other hand, if a tree falls on your home due to termite damage, your insurance probably won't cover it, as termite damage is usually excluded from standard policies.
It's important to note that standard home insurance policies do not cover foundation damage caused by floods or earthquakes. If you live in an area prone to these types of disasters, you may need to purchase separate insurance policies to protect your home's foundation.
Additionally, home insurance usually does not cover foundation damage related to negligence, construction mistakes, or wear and tear. For example, if the damage is caused by shifting or settling earth, sagging floors, or rotting floor joists, it will likely be considered normal wear and tear and won't be covered by your insurance.
To determine whether your home insurance covers foundation repair, carefully review your policy for inclusions, exclusions, and any endorsements or additional coverage you may have added. If you're unsure, contact your insurance company or agent to clarify.
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Floods and earthquakes require separate insurance policies
Homeowners' insurance policies typically cover foundation repairs if the damage is caused by a covered event. However, some types of foundation damage are specifically excluded from standard policies. Floods and earthquakes, for example, usually require separate insurance policies.
Foundation repairs can be expensive, often costing between $2,188 and $7,884, but prices can reach as high as $100,000 depending on the extent of the damage. Therefore, it is important to understand what your insurance policy does and does not cover.
Standard home insurance policies generally cover the structure of your home against perils such as fire, smoke, wind, hail, lightning, and some types of water damage. However, when it comes to foundation repairs, coverage can vary depending on the specific cause of the damage.
While homeowners' insurance typically covers sudden and accidental events, such as a fallen tree or a vehicle crashing into your house, it usually excludes damage caused by floods and earthquakes. For instance, if you live in an area prone to flooding or earthquakes, you may need to purchase separate flood insurance or earthquake insurance to ensure coverage for foundation repairs.
It is worth noting that some insurance policies may provide dwelling coverage on an open perils basis, meaning any loss that is not explicitly excluded is covered. In such cases, it is essential to carefully review your policy to understand which perils are included and excluded.
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Preventing foundation damage
Your home's foundation is its most critical structural component. A solid foundation keeps your house level, stable, and protected from external factors. Foundation problems can lead to extensive and expensive damage if left unchecked. Here are some tips to prevent foundation damage:
Maintain Proper Drainage
Water is the foundation's worst enemy. Excess moisture can cause soil to expand, putting pressure on foundation walls. When the soil dries, it contracts, leading to settling. To prevent this, ensure proper drainage around your home:
- Clean and maintain gutters by clearing debris at least twice a year, or more frequently if there are many nearby trees.
- Extend downspouts to direct water at least 5-10 feet away from the foundation, using extensions or underground drainpipes if necessary.
- Grade the soil so that it slopes away from the house on all sides, with a drop of about 6 inches for every 10 feet.
- Install a French drain or other drainage methods if needed.
Control Moisture Levels
- Use a dehumidifier in basements or crawl spaces to maintain humidity between 30-50%.
- Install a sump pump if your area is prone to high water tables or heavy rains.
- Promptly repair any plumbing leaks, as even small leaks can lead to significant moisture issues over time.
- Avoid overwatering near the foundation and direct water away from the house.
- Maintain a plant-free zone of 2-3 feet around the foundation to prevent moisture buildup.
Landscaping
Landscaping plays a crucial role in protecting your foundation. Here are some tips:
- Avoid planting large trees or bushes near the house as their roots can cause foundation damage.
- Trim grass and foliage near the foundation to discourage rodents and pests.
- Create a mulch area around the foundation to absorb excess water.
- Ensure your landscaping has a gentle grade that slopes away from the house to move water away from the foundation.
Home Inspection
Get a qualified inspector to carefully examine your foundation before purchasing a home. This will help identify any potential problems and allow you to make informed decisions or necessary repairs.
By following these preventive measures, you can maintain the integrity of your foundation and avoid costly repairs in the future.
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Filing a claim
The first step in filing a claim is to review your insurance policy. Homeowners insurance policies typically cover foundation repairs if the damage is caused by a covered peril, such as a fire, tornado, or water damage. However, it's important to note that standard home insurance policies do not cover foundation damage caused by floods or earthquakes, and some policies may exclude other perils as well. Understanding what your policy covers and what is excluded is crucial before filing a claim.
Once you have confirmed that your policy covers the type of damage to your foundation, the next step is to gather evidence. Take photos and videos of the damage to support your claim. It is also recommended to hire a contractor or foundation specialist to assess the damage and determine the cause. Their professional opinion can be valuable in making a case for coverage.
After gathering evidence, contact your insurance agent to initiate the claims process. They will be able to answer any questions you may have and guide you through the process. Your insurance company will then send a claims adjuster to evaluate the damage in person. This assessment will determine whether the damage is covered by your policy or if it falls under an exclusion.
If the damage is covered, you can hire a contractor to complete the repairs. It is important to choose a contractor that meets your requirements and those of your insurance company. Once the repairs are completed, your insurance company will send you a cheque to cover the repair costs, minus any deductibles.
It is worth noting that foundation repairs can be expensive, and preventative measures are always preferable. Regular maintenance and inspections can help identify potential issues before they become costly problems. By understanding your insurance policy and taking proactive steps to care for your foundation, you can ensure that you are prepared in the event of any damage.
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What to do after filing a claim
After filing a claim, it is important to understand the next steps to ensure a smooth process and avoid any delays or complications. Here is what you should do after filing a claim for foundation repair:
Understand the Coverage and Policy Details:
Firstly, carefully review your insurance policy to clarify what is covered and what isn't. Standard home insurance policies typically cover dwelling repairs, which include the physical structure of your home, attached structures, and your foundation. However, it's important to identify any exclusions or specific perils that are covered or excluded in your policy. Understand the cause of the damage and whether it falls under a covered event or peril. Some common covered perils include fire, smoke, wind, hail, lightning, and certain types of water damage.
Document the Damage:
Take photographs and videos of the damaged areas to create a comprehensive record of the issue. This visual evidence will support your claim and can be useful during the evaluation and repair process.
Contact Your Insurance Agent:
Reach out to your insurance agent or company representative to get answers to any pressing questions you may have. They can provide clarity on the specific details of your policy, coverage, and next steps in the claims process.
Arrange for a Claims Adjuster:
Your insurance agent can arrange for a claims adjuster or evaluator to visit your home and assess the damage in person. This evaluation will help determine the extent of the repairs needed and whether they fall within the scope of your insurance coverage.
Select a Contractor:
After the evaluation, hire a contractor that meets your requirements and those specified by your insurance company. Ensure the contractor has the necessary qualifications and expertise to undertake the foundation repairs effectively.
Prevent Further Damage:
While awaiting repairs, take preventive measures to mitigate potential threats to your foundation. This includes maintaining the soil moisture, trimming foliage near the foundation to discourage pests, and ensuring proper drainage to prevent water accumulation near the foundation.
Remember, foundation repairs can be costly, and the time taken for repairs may vary. Stay in communication with your insurance company and follow their instructions to ensure your claim is processed efficiently.
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Frequently asked questions
It depends on the cause of the damage. If the damage is caused by a covered peril, such as a tornado or fire, then AAA homeowners insurance will likely cover the cost of foundation repair. However, if the damage is caused by flooding, earthquakes, or negligence, AAA homeowners insurance will not cover the repairs.
Covered perils can include sudden and accidental events like a fallen tree, a burst pipe, a driver crashing into your house, or an explosion caused by a gas leak.
Review your AAA homeowners insurance policy to understand what is covered and what is not. If you believe the damage is covered, contact your agent to ask any pressing questions and get the claims process started. They will arrange for a claims adjuster to evaluate the damage in person.
