Does Home Insurance Cover Structural Issues?

Home insurance is a financial safeguard for property owners, offering protection against various risks. Coverage for structural issues, however, is not a universal guarantee; it depends significantly on the specific cause of the damage and the terms outlined in an individual policy. Understanding these nuances is important for homeowners to adequately protect their investment.

Typical Home Insurance Coverage for Structural Issues

Structural issues in a home insurance context refer to damage affecting the core integrity of a dwelling, such as its foundation, load-bearing walls, or roof framing. This type of damage can range from cracks in walls to a damaged foundation.

Homeowners insurance policies, particularly common forms like HO-3 and HO-5, generally include “dwelling coverage” (Coverage A) to protect these structural elements. This coverage applies when damage results from specific perils outlined in the policy.

Standard policies cover structural damage caused by sudden and accidental events. These commonly include perils like fire, lightning, windstorms, and hail. Damage resulting from explosions, vandalism, falling objects, or the weight of ice, snow, or sleet is also covered. Additionally, sudden and accidental discharge or overflow of water from plumbing, heating, or air conditioning systems, such as from burst pipes, is included.

If these covered events compromise the structural integrity of a home, the costs to repair or rebuild would be covered up to the policy’s limits. An HO-3 policy covers the dwelling on an “open perils” basis, meaning it covers all causes of damage unless specifically excluded. The HO-5 policy offers broader “open perils” coverage, extending this to personal property.

Common Exclusions Affecting Structural Damage

While home insurance provides significant protection, policies contain explicit exclusions for certain events or types of damage, even if they lead to structural problems. These exclusions define the limits of coverage.

Earth movement, which encompasses earthquakes, landslides, mudslides, and sinkholes, is a common exclusion. Unless a homeowner purchases a specific endorsement or a separate earthquake policy, damage from these natural ground shifts is not covered.

Similarly, damage from floods, defined as rising water, storm surge, or overflow of natural bodies of water, is excluded from standard policies and requires a separate flood insurance policy, often available through the National Flood Insurance Program.

Damage resulting from wear and tear, gradual deterioration, or neglect is excluded from coverage. This includes issues like a roof leaking due to age or rotting wood from long-term moisture exposure, as insurance is intended for sudden, accidental events, not preventable maintenance issues.

Foundation issues stemming from normal settling, cracking, shrinking, or expansion of soil are also excluded unless directly caused by a covered peril. Pest infestations, such as damage caused by termites, rodents, or other vermin, are not covered, as they are considered maintenance issues.

Mold or fungus damage is excluded if it arises from long-term moisture problems, neglect, or is not directly linked to a sudden, accidental, and covered peril. Damage resulting from government action, such as confiscation or destruction by civil authority, is another standard exclusion found in most policies.

Steps for Addressing Structural Damage and Filing a Claim

Upon discovering potential structural damage, ensuring the safety of all occupants is the immediate priority. If the damage poses a risk, evacuating the property and contacting emergency services is essential before attempting any further action.

Once the area is safe, document the damage with photos and videos before any cleanup or temporary repairs begin. Maintain records of any emergency repairs and associated receipts.

Promptly notifying the insurance company is a key step in the claims process. Homeowners are expected to take reasonable steps to prevent further damage, such as tarping a damaged roof or shutting off a burst water pipe, to mitigate additional loss.

However, extensive permanent repairs should wait until an insurance adjuster has evaluated the damage. An insurance adjuster will assess the claim, and homeowners should cooperate fully, providing all requested documentation.

Homeowners may consider obtaining an independent assessment from a qualified structural engineer or contractor to determine the cause and extent of the damage. Reviewing the policy documents for claim procedures and coverage specifics is also important.