Jeffrey Wade
Homeowners insurance may cover foundation repairs, but this depends on the cause of the damage. Typically, standard policies cover damage caused by sudden, natural events, such as fires, hurricanes, and tornadoes. However, gradual damage caused by wear and tear, neglect, faulty construction, or soil settling is generally not covered. Homeowners in areas prone to earthquakes or flooding may need to purchase separate policies, as standard insurance typically does not cover these perils. It is important to review your specific policy to understand what is covered and what is not.
| Characteristics | Values |
|---|---|
| Coverage | Homeowners insurance covers foundation damage caused by covered perils, such as fire, severe weather events (hurricanes, tornadoes, strong winds, hailstorms, lightning strikes), and fallen trees. |
| Exclusions | Floods, earthquakes, normal wear and tear, neglect, faulty construction, settling, insects, and vermin are typically not covered. |
| Additional coverage | Water backup, sinkhole, and earthquake insurance can be purchased separately or added as endorsements to the policy. |
| Claim process | Document the damage with photos and videos, file a claim with the insurance provider, and speak with the adjuster. |
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What You'll Learn
Flood insurance
The National Flood Insurance Program (NFIP) is managed by FEMA and delivered to the public by a network of more than 47 insurance companies and the NFIP Direct. The NFIP provides flood insurance to property owners, renters, and businesses, helping them recover faster when floodwaters recede. It offers two types of coverage: building coverage and contents coverage. The building coverage offers up to $250,000 in coverage for the home's structure, including the foundation and the systems that keep it running. Built-in appliances like refrigerators, dishwashers, and stoves are also typically covered. Carpeting and personal property are generally covered, except for items in the basement. Contents coverage protects your belongings.
It is important to note that flood insurance policies vary, and certain circumstances will factor into what is covered, such as where you live, the kind of house you have, its age, and how it is built and arranged. For example, damage caused by a sewer backup is covered if it is a direct result of flooding. Flood insurance policies also typically have a 30-day waiting period before they go into effect, so it is important to plan ahead.
Flooding can occur anywhere, even outside of high-risk flood areas. In fact, nearly one-third of NFIP flood insurance claims come from outside these designated areas. Flooding can be caused by heavy rain, melting snow, severe coastal weather, poor drainage systems, summer storms, neighbourhood construction, and broken water mains. As flooding is the most common and costly natural disaster, affecting 90% of presidentially declared U.S. natural disasters, it is crucial to consider purchasing flood insurance to protect your home, business, and possessions.
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$11.75 $16.99
Earthquake insurance
Standard homeowners insurance does not cover earthquake damage, including foundation shifting. Earthquake insurance is a separate policy that you can purchase, and it is highly recommended if you live in an earthquake-prone area.
Where can you purchase earthquake insurance?
You can purchase earthquake insurance from your current homeowners insurance company as an add-on to your existing policy, or you can buy a standalone earthquake policy. In California, the California Earthquake Authority (CEA) is one of the largest providers of earthquake insurance, but you must purchase it through an insurance company that is a member of CEA.
Earthquakes can cause devastating financial losses, and having insurance can help you recover faster and manage risk more effectively. While it may not be required by law, it is essential to consider the benefits of earthquake insurance if you live in an area at risk for tremors.
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Signs of foundation damage
The foundation of a house is one of its most critical components, and damage to it can be extremely expensive to repair. Homeowners insurance may cover repairs, but only if the damage is due to a covered event, such as a tornado or fire. It will not cover damage due to negligence, normal wear and tear, or certain high-risk events such as earthquakes and floods.
- Sticking doors and windows: Doors and windows that stick or don't close properly may indicate that the foundation has shifted, causing changes in the position of the walls.
- Cracks in walls, floors, tiles, or the foundation itself: Cracks can be caused by normal house movement, but they could also indicate a more serious foundation issue, especially if they are wide, appear suddenly, or are accompanied by signs of water damage. Horizontal and stair-step cracks are generally more concerning than vertical ones.
- Sagging or sloping floors: If your floors sag, bounce, or slope, it could mean that your foundation has sunk or shifted. This can be caused by changes in soil density and moisture levels.
- Leaning chimney: A leaning chimney is a clear indication of significant foundation damage. Chimneys are heavy and rely on the foundation for support, so if the foundation sinks or shifts, the chimney may lean away from the house.
- Water damage: Water intrusion from a leaking basement or plumbing leaks can saturate the soil around the foundation, leading to potential damage. Water damage can also cause mould growth and structural issues.
- Tree roots: Trees and large shrubs planted too close to your home can cause foundation issues as their roots grow and exert pressure on foundation walls.
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Covered perils
Tornadoes and hurricanes
Most standard home insurance policies cover foundation damage caused by tornadoes and hurricanes. These weather events are considered covered perils as they are sudden and can cause significant damage to a home's foundation.
Fallen trees
Damage to a home's foundation caused by fallen trees is typically covered by homeowners insurance. This includes trees that have fallen due to strong winds or storms. However, it's important to note that tree roots growing too close to the foundation may be excluded from coverage.
Fires
Fires are considered a covered peril, and most homeowners insurance policies will cover foundation damage resulting from them. This includes damage caused by both natural and man-made fires.
Severe weather
Severe weather events such as strong winds, hailstorms, and lightning strikes are generally covered by homeowners insurance. These events can cause direct physical loss to a home's foundation and are therefore considered covered perils.
Vehicle impact
If a vehicle collides with a house, causing foundation damage, this is typically covered by homeowners insurance. This is because it is considered a sudden and accidental event.
It is important to note that while these events are generally considered covered perils, the specific coverage may vary depending on the insurance provider and the policy details. Homeowners should carefully review their policies to understand what is covered and what exclusions may apply. Additionally, some perils, such as earthquakes and floods, typically require separate insurance policies and are not usually covered by standard homeowners insurance.
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Excluded perils
Homeowners insurance policies vary, but there are some common exclusions to the coverage provided. These are known as 'perils' and are outlined in the policy's exclusions section.
Firstly, standard homeowners insurance does not cover damage caused by flooding. This includes sewer backup, sump failure, or water that seeps into your home’s foundation. If you live in a flood-prone area, you should consider purchasing separate flood insurance. This may not cover damage to your foundation caused by shifting soil.
Secondly, earthquakes are excluded from standard policies. You can, however, purchase earthquake insurance, which may also cover the cost of upgrading your foundation to meet current building codes.
Thirdly, damage caused by vermin, insects, and rodents is generally not covered. This includes termite infestations, which can cause significant foundation damage.
Fourthly, mold is usually excluded unless it resulted from a covered peril, such as a storm that breaks a window and causes water damage.
In certain areas, wind damage may be excluded from coverage. For example, in hurricane-prone states like Alabama, Florida, and Texas, wind may not be a covered peril, depending on the specific policy.
Other common exclusions include damage caused by:
- Normal wear and tear
- Negligence or poor maintenance
- Natural settling
- Tree roots
- Faulty construction
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Frequently asked questions
It depends on the cause of the damage. Homeowners insurance covers foundation damage caused by covered perils, such as fires, hurricanes, tornadoes, and fallen trees. However, it typically does not cover damage resulting from negligence, wear and tear, faulty construction, flooding, or earthquakes.
Some signs of a shifting foundation include cracks in walls, especially near doorways or windows, uneven or sagging floors, and difficulty with doors and windows sticking or latching.
If you suspect foundation damage, it is essential to act quickly. Take photos and videos to document the damage, then reach out to your insurance provider to inquire about filing a claim. They will likely assign a claims adjuster to your case.
Yes, there are several exclusions to coverage for foundation repairs. These include wear and tear, neglect, faulty construction, settling, insects, and other excluded perils listed in your policy. It is important to review your specific policy to understand what is covered and what is not.
Depending on your location and specific concerns, you may want to consider purchasing separate policies for flood insurance, earthquake insurance, or sinkhole insurance, as these are typically not covered by standard homeowners insurance.
