Alyssa Lane
Whether foundation shifting is covered by insurance depends on the cause of the damage. Homeowners insurance usually covers common damages, but many of the common reasons for foundation damage are events that insurance companies generally won't take responsibility for. Foundation damage caused by sudden and unexpected events like severe windstorms, fire, or other natural disasters is typically covered under most home insurance policies. However, damage caused by general soil compaction and expansion, poor maintenance, or neglect is usually not covered. If the damage is caused by flooding or an earthquake, separate coverage is typically required. It's important to carefully review your insurance policy to understand what is and isn't covered, as foundation repairs can be expensive.
| Characteristics | Values |
|---|---|
| Whether foundation shifting is an insured risk | Depends on the cause of the damage and the insurance provider |
| Cause of foundation shifting | Shifting soil due to moisture, temperature changes, poor drainage, water buildup, tree roots, etc. |
| Insurance coverage for foundation shifting | Typically not covered by standard homeowners insurance policies, but may be covered under separate policies for earthquakes and floods or specific clauses for earth movement |
| Preventative measures | Regular inspections, proper drainage, maintaining gutters and downspouts, grading soil away from the foundation, controlling moisture levels |
| Actions to take | Contact insurer immediately, collect evidence of damage, consider hiring a contractor or foundation specialist for assessment |
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What You'll Learn
Foundation repairs due to covered perils
Foundation repairs can be expensive, and insurance coverage depends on the cause of the damage. Generally, foundation cracks or settling aren't covered by homeowners insurance. However, foundation repairs due to covered perils may be covered by insurance.
Covered perils typically refer to sudden and unexpected events such as natural disasters or extreme weather events. Examples include severe windstorms, fires, tornadoes, and hailstorms. If your foundation is damaged by a covered peril, you should contact your insurer to initiate a claim. Most insurers will require you to provide photos and videos documenting the damage.
It's important to note that insurance companies generally deny coverage for foundation repairs resulting from higher-risk events such as earthquakes and floods. These types of events typically require separate insurance policies. Additionally, damage caused by routine home maintenance, negligence, or faulty construction is usually not covered.
To prevent foundation issues, it is recommended to maintain proper drainage around your home and ensure optimal moisture levels in the soil. Regular inspections can also help identify signs of foundation damage early on, allowing for minor repairs that can fit more easily into your budget.
If you live in an area prone to foundation issues, it's advisable to review your insurance policy carefully and consider supplemental coverage or a dwelling foundation rider to ensure you have adequate protection.
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Flood insurance and foundation shifting
Flood insurance is a separate policy from standard home insurance and is required to cover foundation damage caused by flooding. Standard home insurance policies typically do not cover flood damage, and it is considered a higher-risk event by insurance companies.
The average flood insurance claim is $30,000, and the cost of repairing foundation damage can range from $4,600 to $5,900. Flood insurance covers damage caused by natural events, such as river overflow, heavy rains, or unusual and rapid water accumulation. However, it is important to note that damage caused by preventable leaks or years of high humidity is typically not covered by flood insurance.
To prevent flood damage and minimise the risk of foundation shifting, it is recommended to maintain optimal moisture levels around your home's foundation. This can be done by watering the soil around your property, especially during dry seasons, and ensuring proper drainage to direct water away from the home.
Additionally, regular inspections are crucial to catch foundation issues early on. Signs of foundation problems include cracks in walls and doors that don't close properly. If you suspect any issues, it is best to consult a foundation specialist or contractor, who can assess the cause of the damage and help determine if it is covered by your insurance policy.
While flood insurance covers damage caused by flooding events, standard homeowners insurance may cover foundation repairs if the damage is caused by covered perils, such as tornados, fires, or plumbing malfunctions. It is important to carefully review your insurance policy and understand what specific events and types of damage are covered.
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Earthquakes and insurance coverage
Earthquakes can cause foundation shifting, which is a very costly and unfortunate event for homeowners. It is important to understand the insurance coverage for foundation repairs, especially in the event of an earthquake.
Home insurance policies typically cover foundation repairs that are a result of sudden and unexpected events, such as natural disasters or extreme weather. This includes damage caused by covered perils like tornadoes, fires, and in some cases, floods. However, earthquakes are generally excluded from standard home insurance policies, and separate coverage is often required for foundation damage caused by seismic activity. This is because earthquakes are considered high-risk events, and insurance companies view them as less probable or fortuitous than other natural disasters.
To ensure coverage for earthquake-related foundation damage, it is essential to review your insurance policy carefully. Some insurers may offer endorsements or additional coverage for earthquakes, while others may require a separate policy altogether. It is also important to note that even with earthquake coverage, insurance companies may deny claims if the damage is due to negligence, poor maintenance, or pre-existing issues.
To increase the likelihood of a successful insurance claim for foundation repairs, it is recommended to take proactive measures such as regular inspections, proper drainage systems, and addressing any cracks or signs of shifting promptly. Additionally, documenting the damage with photos and videos can be helpful when filing a claim.
In summary, while earthquakes typically require separate insurance coverage, understanding your policy and taking proactive measures can help ensure financial protection in the event of earthquake-related foundation damage.
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Insurance for foundation damage prevention
Foundation damage can be expensive to fix, so it is important to understand what your insurance covers. Most home insurance policies cover foundation damage resulting from sudden, natural events, like tornadoes, fires, and severe windstorms. However, they typically exclude damage caused by earthquakes and floods and general soil compaction and expansion.
To ensure you are covered in the event of foundation damage, consider the following:
- Review your insurance policy: Understand what your current policy covers and excludes. Look for specific clauses regarding earth movement (earthquakes), floods, and ground cover collapse, as these are typically not included in standard policies.
- Obtain separate coverage for earthquakes and floods: If your insurance provider does not offer endorsements for these perils, consider obtaining separate policies to cover foundation damage resulting from earthquakes and floods.
- Supplement your coverage: Depending on your area's risk factors, consider supplemental coverage, such as a dwelling foundation rider. However, note that even this may not cover soil compaction and expansion.
- Maintain your foundation: Take proactive steps to maintain your foundation, such as regular inspections, proper drainage, and addressing cracks promptly. Prevent tree roots from pushing against your foundation by strategically planting new trees or installing a root guard.
- Monitor for signs of shifting: Keep an eye out for signs of foundation shifting, such as cracks, doors that are difficult to open or close, slanted floors, and moisture in the basement. These signs can help you identify potential issues early on and make minor repairs to prevent more significant damage.
- Understand the causes of foundation damage: Educate yourself on the various causes of foundation damage, such as water damage, shifting soils, soil expansion and contraction, and faulty foundation construction. This knowledge will help you take preventive measures and identify potential issues early on.
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Insurance claim process for foundation shifting
Whether or not foundation shifting is an insured risk depends on what caused the damage. For example, most companies will cover damage due to sudden, natural events, like tornados and fires that wreck your home. However, companies generally deny coverage when the damage is due to higher-risk events such as earthquakes and floods or situations you could have planned for, like pressure from tree roots or poor drainage.
If you spot any issues with your foundation, such as cracks in the basement walls and interior walls, doors that don't close properly, slanted floors, and moisture in the basement, it is recommended to have your home examined by an expert. A contractor or foundation specialist will be able to tell you what caused the damage, which you can then use to decide whether a homeowners claim would be successful.
If the damage is covered by your insurance policy, you can file a claim as you would for any other type of damage. Since most of what you are covered for are sudden events, you should contact the professional at your earliest convenience after the event. If it was a tornado, for example, call your contractor as soon as possible after the storm has passed, and then contact the insurer. After filing the claim, your homeowners insurance company will send a claims adjuster to assess the damage. This is where the assessment of your contractor or foundation specialist will be important. If the adjuster contends the damage was due to natural wear and tear, or something you are not covered for, your contractor will be able to vouch for you.
Many insurance providers, including State Farm, USAA, Safeco, Farmers, Liberty Mutual and Amica, help simplify this process by providing you with a network of preferred contractors. Some even guarantee the work done for a set period when you choose one of their contractors. The insurance company will send you a check in the mail to cover the repair costs minus your deductible.
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Frequently asked questions
Foundation shifting occurs when the soil beneath a home moves, causing the foundation to become unstable and move. This can be caused by changes in moisture levels in the soil, poor drainage, water buildup, tree roots, or inferior construction.
Foundation shifting is typically not covered by standard homeowners insurance policies. Most policies cover damage due to sudden and unexpected events, such as natural disasters or extreme weather, but not damage that falls under routine home maintenance or negligence. However, if the foundation shifting is caused by a covered peril, such as a tornado or fire, it may be covered.
If your foundation is shifting, it is important to contact your insurance company as soon as possible. You should also take steps to mitigate the damage, such as installing gutters and improving drainage to reduce the impact on your home's foundation.
To prevent foundation shifting, it is important to regularly monitor your foundation for signs of movement, such as cracks or doors that are difficult to open or close. Maintaining proper moisture levels in the soil around your foundation and ensuring good drainage can also help prevent shifting.
