The foundation of your home is a critical component. Everything builds up from it. A small crack or area of damage could mean the entire structure is at risk. Yet, foundation problems can also be expensive to fix. Will your home insurance help cover your losses?
The answer depends on a number of factors. What causes the damage is the most important element. Here’s why.
Does Your Insurance Cover the Cause of the Damage?
The most important question you need to answer is this one. If the home insurance policy covers the event causing the foundation damage, your policy may cover the repairs. However, many times, this is not the case. Here are a few key examples.
A Plumbing Line Burst Due to Cold Temperatures
This happens more often than many people realize. In short, the home’s plumbing freezes, causing the line to expand and break. This causes flooding. It may damage the foundation as well.
Most home insurance policies cover plumbing-related damage like this. This, too, depends on the cause. If a burst pipe caused the damage to the foundation, your home insurance policy may cover the repairs.
Perhaps a flood came through the area. A nearby river overflowed, backing up into your yard and flooding your home. This causes the soil to wash away under the home. The foundation cracks.
In this case, the home’s damage may not have any protection. Most standard home insurance policies do not have flood insurance. This may mean you do not have the coverage you need for the flood cleanup, repair, or the foundation.
Perhaps the flooding occurred, or an earthquake came through the area. However, you have a special policy for these specific types of events. Flood insurance and earthquake insurance are both highly-valuable tools in this situation. These policies cover the damage these events create. In this case, it may include foundation damage.
Maybe You Are Not Sure What Caused the Damage
In some situations, you simply do not know what caused the damage. In this case, call your home insurance agent. Ask him or her to provide an inspection of the home to determine the cause. You can also call a licensed professional to offer their opinion. If they can show the damage was due to a covered peril, your policy is there to help you.
Even if you are unsure, contact your home insurance agent. He or she can offer guidance to you on this type of event.
FAQ’s About Does Home Insurance Cover Foundation Repair?
What types of foundation damage are covered by home insurance?
Most policies cover foundation damage caused by covered perils, such as fire, lightning, wind, hail, and falling objects.
Does home insurance cover foundation damage caused by water?
It depends on the source of the water damage. If the water damage is caused by a covered peril, such as a burst pipe, then foundation damage may be covered.
What is not covered by home insurance when it comes to foundation repair?
Home insurance typically does not cover foundation damage caused by wear and tear, settling, or poor maintenance.
Can I purchase additional coverage for foundation repair?
Some insurance companies offer endorsements or riders that provide additional coverage for foundation repair. It’s best to check with your insurer to see if this is an option.
How do I know if my foundation damage is covered by my home insurance policy?
You should review your policy or contact your insurer to determine if your specific type of foundation damage is covered.
What should I do if I suspect foundation damage?
You should contact a professional foundation repair contractor to assess the damage and determine the cause. Then, you should contact your insurance company to determine if the damage is covered.
How much does foundation repair typically cost?
The cost of foundation repair can vary greatly depending on the type and severity of the damage. It’s best to get a quote from a professional foundation repair contractor.
What factors affect the cost of foundation repair?
The factors that affect the cost of foundation repair include the type of foundation, the extent of the damage, the location of the damage, and the cost of labor and materials in your area.
What should I look for in a foundation repair contractor?
You should look for a contractor who is licensed and insured, has experience with your type of foundation, provides a detailed written estimate, and offers a warranty on their work.
How location influences insurance coverage for foundation repairs
Location can affect insurance coverage for foundation repairs in various ways. For instance, if your home is situated in an area prone to earthquakes, floods, or heavy storms, these natural disasters may lead to foundation damage. Insurance companies often take these risks into account, and it’s essential to review your policy to ensure it covers foundation repairs due to these specific perils. Keep in mind that separate policies or riders might be required for natural disasters like earthquakes or floods.
Differences in insurance companies’ policies for foundation repair
Not all insurance companies have the same policies regarding foundation repair. Policies may vary in terms of coverage, deductibles, and exclusions. It is vital to carefully review your homeowners insurance policy to understand the extent to which foundation repairs are covered. Some policies may only cover damages caused by specific events, such as fires or storms, while others may have broader coverage that includes a range of perils. Always compare multiple quotes from various insurance providers to find the best coverage for your needs.
The impact of water damage on foundation repair coverage
Water damage can significantly impact foundation repair coverage. Most standard homeowners insurance policies cover sudden and accidental water damage, like burst pipes or appliance leaks. However, they usually exclude gradual water damage caused by poor maintenance or ongoing issues, such as seepage or long-term leaks. Furthermore, flood damage, which can have a significant impact on your foundation, is typically not covered by a standard policy. You may need to purchase separate flood insurance to protect your property in the event of a flood-related foundation damage.