Does Building Insurance Cover Subsidence?

Building insurance protects the structural elements of a home against various perils. A common concern for property owners is damage resulting from subsidence, which can impact a property’s stability. Understanding how building insurance addresses subsidence is important for homeowners to safeguard their investment.

Understanding Subsidence

Subsidence occurs when the ground beneath a property sinks, pulling the foundations down with it. This process can cause the walls and floors to shift, potentially destabilizing the property’s structure. Common causes include the shrinkage of clay-rich soil during dry weather or drought conditions, as clay contracts when it loses moisture. Tree roots can also extract significant amounts of water from the soil, causing it to dry out and shrink, leading to ground movement. Leaking underground pipes or faulty drainage systems can wash away soil particles, making the ground unstable and contributing to subsidence. Additionally, properties built over old mine workings or areas with poor foundational preparation can be vulnerable to ground shifts.

Signs of potential subsidence include diagonal cracks, often wider at the top and appearing near doors, windows, or extensions. Doors and windows that begin to stick or become misaligned, or floors that appear to slope or sink, can also suggest ground movement. Rippling or creasing of wallpaper not caused by dampness, and gaps appearing between walls and ceilings, are further visual cues. Early detection allows for quicker assessment and potentially less extensive repairs.

Building Insurance Coverage for Subsidence

Building insurance policies generally cover the structural integrity of a property, including its walls, roof, and foundations. Many standard building insurance policies in the United States include coverage for subsidence. This coverage is typically part of the “dwelling coverage” section of a homeowner’s policy. However, the exact terms, conditions, and limits of this coverage can vary significantly between different insurers and individual policies.

When a policy does cover subsidence, it typically includes the costs associated with investigating the cause of the damage, monitoring the ground movement, and implementing necessary repairs to stabilize the building. This can extend to covering the cost of alternative accommodation if the home becomes uninhabitable during the repair process. While some policies might cover damage to surrounding structures like patios or driveways, this is usually only if the main dwelling is also affected by the same cause. Homeowners should review their policy documents to understand the full scope of their subsidence coverage, including any applicable deductibles, which can often be higher for subsidence claims, ranging from $1,000 to $5,000 or more.

Common Exclusions in Policies

While building insurance often covers subsidence, policies contain specific exclusions. Damage resulting from normal settlement or heave, which is the upward movement of the ground, is commonly excluded. Settlement, distinct from subsidence, refers to the natural settling of a new building within its first decade, resulting in minor, non-structural cracks. Damage caused by poor maintenance, such as unrepaired leaking pipes or faulty drainage, can also be excluded if it directly contributes to the subsidence. Insurers differentiate between sudden, unforeseen events and issues arising from a lack of property upkeep.

Additionally, many standard homeowners insurance policies exclude “earth movement” of any type, which can encompass subsidence, unless specifically added as an endorsement or separate policy. This exclusion often applies to events like earthquakes, landslides, and mudslides. However, some states offer specific mine subsidence insurance, which covers damage caused by the shifting ground due to underground mining activities. Damage from coastal or river erosion, or issues stemming from defective materials, design, or faulty workmanship, are also common exclusions that can impact a subsidence claim.

Making a Subsidence Claim

If a homeowner suspects subsidence, they should contact their insurance provider or broker promptly to report the potential damage. This initial notification involves providing details about when the signs were first observed and any immediate concerns. Documenting the damage thoroughly with photographs and videos from various angles is also crucial, along with noting the location and size of cracks or other visible issues.

The insurer will typically assign an adjuster or send a surveyor to inspect the property and assess the damage. This investigation may involve taking soil samples or monitoring the property’s movement over a period, which can take several months to determine the cause and extent. Homeowners should cooperate with the adjuster and provide requested documentation, such as past maintenance records or details of any building work. Once the cause is confirmed and coverage is established, the insurer will work with the homeowner to develop a repair plan, which could range from minor fixes to more extensive structural interventions like underpinning in severe cases.