Does House Insurance Cover Subsidence?

Homeowners often wonder if their insurance covers subsidence. Subsidence involves the downward movement of ground beneath a building, which can compromise a home’s foundation and structural integrity. Understanding coverage for this ground movement is important to protect your investment.

Defining Subsidence and Its Causes

Subsidence refers to the sinking of ground beneath a building, causing the structure’s foundations to descend. This movement is distinct from settlement, the natural, uniform compaction of soil under a new building’s weight during its initial years. It also differs from heave, the upward movement of ground typically due to soil expansion when saturated.

Several factors contribute to subsidence, often involving changes in soil moisture. Tree roots are a common cause, as large trees or shrubs near foundations can extract significant moisture from soil, leading it to shrink, particularly in clay-rich areas. Certain soil types, such as clay, are more susceptible to shrinking when dry and expanding when wet, causing ground instability.

Leaking drains or pipes can also instigate subsidence by washing away fine soil particles, creating voids beneath the foundation. Properties built over historical mining activities or areas with natural geological instability may experience ground movement. Prolonged drought conditions can exacerbate soil shrinkage, especially in susceptible areas, further contributing to subsidence.

Home Insurance Coverage for Subsidence

Standard homeowners insurance policies generally exclude damage caused by earth movement, including subsidence, unless specific additional coverage is purchased. Some state governments and private insurers offer specialized mine subsidence insurance for properties in at-risk areas. This coverage may be available as a separate policy or an endorsement to an existing homeowner’s policy.

When covered, subsidence insurance typically addresses costs for repairing damage to the building’s structure. This includes expenses for foundation repairs, underpinning, and rectifying cracks in walls or floors. Policies often cover investigation costs, including surveys, soil tests, and structural assessments.

If a home becomes uninhabitable during necessary repairs, coverage may extend to alternative accommodation expenses, such as temporary housing. Professional fees for architects, surveyors, and engineers are also commonly included. Homeowners should note that subsidence claims often carry a higher deductible, or excess, than other types of claims, sometimes ranging from $1,000 or more.

Exclusions and Limitations in Coverage

Various scenarios can lead to the exclusion of subsidence damage from a home insurance policy. Damage from poor maintenance, such as neglected drainage systems or unrepaired leaking pipes, is typically not covered. Insurers generally exclude subsidence that occurred prior to the policy’s effective date and was not disclosed.

Issues from faulty design or construction are also common exclusions. Damage to detached structures like sheds, garages, or boundary walls may have limited or no coverage compared to the main dwelling, unless the main structure is also affected. Damage to external features like driveways or patios is often excluded unless integral to the main building’s damage.

Differentiating subsidence from other ground movement causes is important. Damage caused solely by flooding, for example, is typically covered under a separate flood insurance policy, not standard subsidence terms. Minor cracks from normal building settlement or plaster shrinkage are usually considered routine wear and are not covered by insurance.

Steps to Take When Suspecting Subsidence

Upon suspecting subsidence, homeowners should immediately document all observed damage. This involves clear photographs and videos of cracks, distortions, and potential contributing factors like leaking pipes or nearby large trees. Maintaining a detailed written record of when the damage was first noticed and its progression is advisable.

Monitoring the growth of cracks by marking them with a pencil or using crack monitors can provide valuable evidence of active movement. Ensuring property safety is paramount; if structural concerns arise, seek professional advice and consider temporary evacuation.

The next step is to notify the home insurance provider as soon as possible. The insurer will typically require the policy number and a detailed description of the damage. They often appoint a loss adjuster or surveyor to investigate the issue; homeowners should cooperate fully, providing access and requested information.