Does Home Insurance Cover Cracked Walls?

Home insurance policies generally provide financial protection against unforeseen damage to a home. This protection primarily applies to sudden and accidental damage resulting from specific events, known as perils. While homeowners insurance offers a safety net for many types of property damage, it typically does not cover cracked walls unless the damage is a direct consequence of a covered peril. Understanding the specific conditions and exclusions within a policy is important for homeowners to know what is, and is not, covered.

Understanding Home Insurance Coverage for Cracked Walls

Home insurance covers damage caused by “perils,” specific events outlined in an insurance policy. These can include fire, lightning, windstorms, hail, explosions, and sudden water discharge from plumbing systems. If a covered peril causes damage, a homeowner may file a claim for repair costs.

Policies are categorized into “named perils” and “open perils.” A named perils policy covers damage only from events explicitly listed. If a peril is not listed, any damage it causes is not covered.

An “open perils” policy, also known as “all perils” or “all risk” coverage, provides broader protection. This policy covers any damage unless specifically excluded. While open perils policies offer comprehensive coverage, they still contain significant exclusions relevant to cracked walls.

Cosmetic cracks, such as hairline cracks from typical settling or aging, are generally not covered. These are considered maintenance issues or normal wear and tear. Structural cracks are only covered if directly caused by a covered peril under the policy terms.

Common Causes of Cracked Walls and Coverage Implications

The coverage for cracked walls depends entirely on the cause of the damage, with some causes potentially covered by standard policies and many others explicitly excluded. Home insurance generally covers structural damage, including cracked walls, when it results from a sudden and accidental event caused by a covered peril. This includes incidents such as fire and smoke damage, which are universally covered perils and can lead to structural damage and cracking.

Damage from external impacts, like a vehicle crashing into the home or a falling object such as a tree or power pole, is also typically covered. Similarly, cracks resulting from explosions are usually included under standard policy coverage. If cracked walls are a consequence of sudden and accidental water discharge from a plumbing, heating, or air conditioning system, such as a burst pipe, the resulting damage is often covered. This coverage typically applies to the water damage itself, not the repair of the faulty pipe if it failed due to wear and tear.

However, many common causes of cracked walls are almost universally excluded from standard home insurance policies. Earth movement, which includes events like earthquakes, landslides, mudslides, and sinkholes, is a major exclusion. Homeowners typically need to purchase separate endorsements or dedicated policies, such as earthquake insurance or specific sinkhole coverage, to protect against these types of damages.

Damage from the natural settling, shrinking, bulging, or expansion of foundations, walls, floors, or ceilings is also generally not covered. These issues are considered part of normal home aging and maintenance, falling under the wear and tear exclusion. Similarly, cracked walls caused by general wear and tear, deterioration over time, inherent vice, or latent defects are excluded because they are not sudden and accidental events.

Poor design, faulty workmanship, or defective materials used during construction or renovation are another common set of exclusions. Insurance policies are designed to cover unforeseen perils, not issues stemming from construction flaws that should have been addressed by builders or contractors. Furthermore, water damage from floods, surface water, or water below the surface, such as seepage or hydrostatic pressure, is not covered by standard home insurance. Protection against these water-related damages requires a separate flood insurance policy, typically obtained through the National Flood Insurance Program (NFIP), or specific endorsements for issues like sewer backups.

Navigating Your Policy and Making a Claim

If you suspect your cracked walls are due to a covered peril, the initial step involves thoroughly reviewing your specific home insurance policy documents. It is important to locate and understand sections such as “Perils Insured Against,” “Exclusions,” and “Conditions” to confirm what events your policy covers and what it specifically excludes. Understanding your deductible, the amount you must pay out-of-pocket before your insurance coverage begins, is also a necessary part of this review.

Once you have reviewed your policy, documenting the damage to your cracked walls is an important next step. This documentation should include clear photographs and videos from various angles, along with detailed notes on when you discovered the cracks and what you believe caused them. It is advisable to avoid making extensive, permanent repairs before an insurance adjuster has had the opportunity to assess the damage, as this could hinder their evaluation.

The next action is to contact your insurance company to initiate a claim. You will typically need to provide basic information about the damage and the circumstances surrounding its occurrence.

Following your claim submission, the insurance company will typically assign an insurance adjuster to inspect the damage. This adjuster will evaluate the cause and extent of the cracked walls to determine if the damage is covered under your policy. Cooperating fully with the adjuster and providing all requested information, including your documentation, helps facilitate the claim process.

After the adjuster’s assessment, you will generally need to obtain multiple, detailed repair estimates from qualified and licensed contractors. These estimates should clearly itemize the costs associated with repairing the cracked walls and any related structural damage.

Finally, understanding how your claim will be settled involves knowing how your deductible applies and the basis of the payout. Policies typically settle claims on either an Actual Cash Value (ACV) or Replacement Cost (RC) basis. ACV pays the depreciated value of the damaged property, while RC covers the cost to repair or replace the damaged property with new materials of similar kind and quality, up to the policy limits.