Does Home Insurance Cover Foundation?

Home insurance protects your dwelling and belongings from unexpected damage. While it offers broad protection, understanding coverage for significant structural components like your home’s foundation can be complex. Coverage is not automatic; it depends on the specific cause of damage and your policy terms. Policies primarily cover sudden and accidental losses, meaning gradual damage or issues from lack of maintenance are typically not included.

Covered Causes of Foundation Damage

A standard homeowner’s insurance policy, such as an HO-3 policy, provides dwelling coverage for your home’s physical structure, including its foundation, on an “open perils” basis. This means the policy covers any cause of damage to the foundation unless specifically excluded.

Fire and smoke damage are typically covered. If a fire compromises the structural integrity of your foundation, repairs are generally included. Damage from falling objects, such as a tree limb or aircraft, which could harm the foundation, is also covered.

Impact from vehicles crashing into the home is another covered peril. Acts of vandalism or malicious mischief are typically included if intentional damage extends to the foundation. Explosions, whether from a gas leak or another source, are also covered events that could impact a home’s foundation.

Sudden and accidental tearing apart, cracking, burning, or bulging of a heating or cooling system or appliance, such as a burst pipe, is generally covered. This type of water damage, if it suddenly saturates the ground around or under the foundation, could lead to shifting or cracking, and the resulting foundation repair would typically be covered.

Excluded Causes of Foundation Damage

Many common causes of foundation damage are explicitly excluded. Damage from earth movement is almost universally excluded from standard home insurance policies. This includes earthquakes, landslides, mudslides, and sinkholes, often requiring separate specialized policies or endorsements.

Water damage exclusions differentiate between sudden, accidental events and other water-related issues. Flooding from external sources, such as overflowing rivers, heavy rainfall runoff, or storm surges, is not covered by standard home insurance policies. Homeowners in flood-prone areas typically need a separate flood insurance policy, often through the National Flood Insurance Program (NFIP).

Water seepage or leakage through foundation walls, particularly if gradual, is commonly excluded as a maintenance issue. Sewer backup or sump pump overflow damage is also usually excluded unless a specific endorsement has been added.

Damage due to wear and tear, deterioration, settling, shrinkage, bulging, or expansion of the home’s structure or foundation over time is almost always excluded. Neglect, which is damage from a homeowner’s failure to properly maintain the property, is also excluded. Damage caused by pest infestations, such as termites, rodents, or other burrowing animals, is not covered.

Reviewing Your Policy and Initiating a Claim

Homeowners should review their actual policy document, not just a summary, to grasp the full scope of their coverage. Key sections to examine include the declarations page, which outlines coverage limits and deductibles, and sections detailing perils covered and specific exclusions. Understanding endorsements is also important, as these can add coverage for perils normally excluded, such as water backup or limited earth movement.

Before contacting your insurer about potential foundation damage, gather all available information. This includes the date the damage was discovered, the known or suspected cause, and any visual documentation like photos or videos.

When initiating a claim, contact your insurance company or agent promptly, providing your policy number and a description of the damage. Continue to document the damage throughout the process, taking more photos or videos as needed. Keep receipts for any temporary repairs made to prevent further damage, and obtain estimates from qualified contractors for the necessary foundation repairs.

An insurance adjuster will be assigned to inspect your property and assess the damage. Their role is to determine if the damage is covered under your policy and to estimate the cost of repairs. After their assessment, the insurer will communicate their claim decision, which could be an approval, denial, or partial approval. If the claim is approved, the insurer will outline the repair process and payment details. If denied, review the denial letter carefully to understand the specific reasons, as this information is essential for any further action.