Does Homeowners Insurance Cover Structural Problems?

Homeowners insurance provides financial protection for one of a person’s most significant assets: their home. This coverage is designed to help address unexpected events that can cause damage to the property, including its fundamental structure. Understanding how these policies respond to structural problems is important for homeowners to adequately protect their investment.

Understanding Homeowners Insurance and Structural Damage

Homeowners insurance policies are contracts outlining the circumstances under which an insurer will provide financial assistance for property damage. Structural damage generally refers to harm affecting the fundamental components of a home, such as the foundation, walls, roof framing, or other load-bearing elements that ensure stability. Such damage can manifest as cracked foundations, sagging roofs, or compromised support beams.

Standard homeowners insurance policies, such as an HO-3, are not designed to cover every type of structural issue. Instead, they focus on damage caused by specific events, often termed “perils.” Coverage hinges on the cause of the damage, rather than the mere existence of damage.

HO-3 policies, the most prevalent type, cover the dwelling structure on an “open perils” basis. This means the policy covers all causes of damage to the home’s physical structure unless a specific cause is explicitly excluded. This differs from “named perils” coverage, which only covers risks specifically listed in the policy.

Covered Causes of Structural Damage

Standard homeowners insurance policies cover structural damage resulting from sudden and accidental events. Fire and smoke damage are covered, including the costs to repair or rebuild fire-damaged structures.

Windstorms and hail are common perils that can lead to significant structural issues, such as damage to roofs, siding, and foundations. The weight of ice, snow, or sleet causing a roof or other structural component to collapse is also covered. Accidental discharge or overflow of water or steam from plumbing, heating, or air conditioning systems, like from a burst pipe, is included, provided the damage is sudden and accidental.

Other covered causes that can impact a home’s structure include lightning strikes, explosions, and damage from vehicles or aircraft impacting the home. Vandalism and theft are covered perils. Falling objects, such as trees, can cause roof and wall damage, and this is also included.

Common Exclusions for Structural Damage

While homeowners insurance provides broad protection, many common causes of structural damage are excluded from standard policies. Earth movement, which encompasses earthquakes, landslides, mudslides, and sinkholes, is excluded. These events are considered high-risk and require separate coverage.

Flood damage, defined as rising water from natural sources, is a significant exclusion. This exclusion applies to water seeping into a home’s foundation or from sewer/drain backups, unless a specific endorsement is purchased. Water damage resulting from continuous or repeated leakage or seepage is not covered, as it is viewed as a maintenance issue rather than a sudden event.

Damage arising from wear and tear, deterioration, or a lack of maintenance is also excluded. This means issues like aging roof shingles, gradual foundation shifts, or rust on pipes are not covered. Mold, fungus, or rot are excluded unless they are a direct result of a covered peril, such as mold from a sudden burst pipe.

Structural damage caused by faulty construction, design flaws, or defective materials is not covered. These are considered responsibilities of the builder or contractor, not risks assumed by the insurer. Pest infestations, including damage from termites, rodents, or other animals, are also excluded.

Navigating Your Policy and Optional Coverages

Understanding the specifics of your homeowners insurance policy is important for understanding coverage. Homeowners should carefully review their policy’s declarations page, which summarizes coverage limits, definitions, and exclusions. The “Dwelling Coverage” section specifically addresses the home’s physical structure, including its roof, foundation, floors, walls, and doors.

Policyholders should also understand their deductible, which is the amount paid out-of-pocket before coverage begins. Deductibles can vary, with some policies having higher deductibles for certain perils like windstorms in high-risk areas. This amount is subtracted from any claim payout.

For structural issues excluded from standard policies, optional coverages or endorsements can be added. For instance, endorsements may provide coverage for water backup from sewers or drains, which is often excluded. Homeowners in areas prone to earthquakes or floods can purchase separate earthquake or flood insurance policies to protect against these specific risks. These additional coverages vary by insurer and geographic location.

Filing a Claim for Structural Damage

If you discover structural damage, act promptly. Begin by documenting the damage with photographs and videos, capturing wide shots and close-ups. Also create a written inventory of damaged property.

Next, take reasonable steps to prevent further damage, such as tarping a damaged roof or boarding up broken windows. Keep receipts for temporary repair materials. Avoid making permanent repairs until instructed by your insurance company.

Contact your insurer as soon as possible to initiate the claim process. Provide details about the incident, including the date and cause of damage. The insurer will arrange for an adjuster to inspect the damage and determine the loss and coverage. Cooperate with the adjuster, providing all requested documentation and answering questions.

Obtain multiple repair estimates from qualified contractors to present to the insurer. Once the insurer provides a settlement offer, review it carefully to ensure it aligns with the damage assessment and policy terms. The payout will be issued after the adjuster’s assessment, with a second payment often following completion of repairs.