Does Home Insurance Cover Subsidence?

Subsidence involves the downward movement of the ground supporting a building. Understanding how home insurance addresses this issue is important for homeowners. This article clarifies the nature of subsidence, outlines typical home insurance coverage, common exclusions, and steps to take if subsidence is suspected.

Understanding Subsidence

Subsidence refers to the downward movement of the ground beneath a building’s foundation, which is not caused by the weight of the building itself. This movement can lead to structural damage in a property. It differs from “settlement,” which is the normal sinking of a new building into its foundations.

Several factors contribute to subsidence. Soil shrinkage is a frequent cause, especially in clay-rich soils during prolonged dry periods when the soil loses moisture and contracts. Tree roots can also cause subsidence by absorbing large amounts of water from the soil near foundations, leading to the ground drying out and shrinking. Leaking drains or pipes can wash away soil beneath foundations, eroding the ground support. Less common causes include historical mining activity or other forms of ground instability.

Homeowners can identify potential subsidence by looking for visible indicators. Diagonal cracks in walls, which are typically wider at the top and appear near windows and doors, are a common sign. Other indicators include rippling wallpaper, doors and windows that stick or are difficult to open and close due to misalignment, and sloping floors. Early detection of these signs can be important for addressing the issue.

Home Insurance Coverage for Subsidence

Most standard homeowners insurance policies include coverage for structural damage to the dwelling. Standard buildings insurance policies in the United States generally cover structural damage caused by subsidence, as well as heave (upward ground movement) and landslip (sideways ground movement).

When subsidence is covered, the insurance policy pays for the costs associated with repairing the structural damage to the home. This can include repairing walls, ceilings, and floors affected by the ground movement. If necessary and approved by the insurer, the cost of underpinning, which involves strengthening or deepening a building’s foundations, may also be covered. If the damage renders the home uninhabitable during repairs, coverage for alternative accommodation, often referred to as “loss of use” or “additional living expenses” (ALE), is usually provided.

Homeowners should be aware of conditions and common exclusions that may apply to subsidence claims. Subsidence claims often carry a higher deductible than other types of claims, sometimes structured as a percentage of the dwelling coverage, such as 1% to 5%, rather than a flat dollar amount. The cause of the subsidence must also be a covered peril under the policy. Insurers may also require or recommend preventative measures, such as tree root management or drain repairs, as part of the claim resolution or for continued coverage.

There are several scenarios where subsidence damage might not be covered by a standard homeowners policy. Damage that existed before the policy’s inception, known as pre-existing damage, is typically excluded. Minor cracks due to the normal settling or drying out of a new building, which are distinct from true subsidence, are also generally not covered. Damage resulting from poor workmanship or design defects in the original construction is another common exclusion. Damage to separate structures like detached garages, garden walls, or driveways may have different or limited coverage terms unless explicitly damaged at the same time as the main dwelling. Damage from specific events like flooding or earthquakes are usually excluded from standard policies unless they directly cause soil erosion leading to subsidence. Mine subsidence, specifically caused by underground mining activity, is also typically excluded from standard homeowners policies.

What to Do if You Suspect Subsidence

If a homeowner suspects their property is experiencing subsidence, action is important to manage the situation and facilitate a potential insurance claim. The first step involves thoroughly documenting any observed signs of damage. This includes taking clear photographs or videos of cracks, noting their location, size, and progression over time, and marking dates of observation.

Promptly contacting the insurance provider is crucial after initial documentation. Homeowners should use the insurer’s dedicated claims line or online portal to notify them of the suspected damage. Early notification allows the insurer to initiate their assessment process while evidence is still clear.

It is important to avoid attempting any structural repairs before the insurer has assessed the situation. Unauthorized repairs could potentially complicate or even invalidate a claim. Instead, homeowners should focus on mitigating further damage, such as addressing any obvious leaks or drainage issues that might exacerbate the problem, and retaining all related invoices and records.

The insurer will typically appoint a surveyor or structural engineer to investigate the cause and extent of the damage. This process often involves site visits, taking soil samples, and monitoring cracks over a period of time, which can sometimes take several months, to determine the movement’s nature and cause. Homeowners should cooperate fully with these investigations, providing any requested documentation or access.

After the assessment, homeowners should carefully review the findings from the surveyor or engineer and the insurer’s proposed course of action. Understanding the assessment helps ensure that the recommended repairs align with the diagnosed problem. The insurer will then typically manage the repair process, which might involve structural repairs, underpinning, or measures like tree management, covering the costs once the deductible is paid.