Is House Leveling Covered by Insurance?

House leveling involves stabilizing and lifting a home’s foundation to restore it to its original, level position. This process becomes necessary when a home exhibits signs of structural distress, such as uneven floors, visible cracks in walls, or doors and windows that stick or do not close properly. These indicators often point to underlying foundation movement or damage. Determining whether house leveling is covered by insurance policies presents a complex challenge, as coverage typically depends on the specific cause of the damage and the individual terms outlined in a homeowner’s policy.

Understanding Home Insurance Coverage

Standard homeowner’s insurance policies, like HO-3 and HO-5, provide financial protection for a dwelling and its contents. The dwelling coverage, often referred to as Coverage A, protects the physical structure of the home, including its foundation. A key distinction in these policies lies in how they cover perils, which are events that cause loss or damage. HO-3 policies typically offer “open perils” coverage for the dwelling, meaning they cover any cause of damage unless it is specifically excluded in the policy. HO-5 policies, while less common, generally provide “open perils” coverage for both the dwelling and personal property, offering broader protection against a wider array of events. Regardless of the policy type, coverage for foundation damage hinges on whether the cause is considered a sudden and accidental event that is not explicitly excluded.

Causes of Foundation Damage and Insurance Implications

The question of whether foundation damage is covered by homeowner’s insurance depends entirely on what caused the damage. Insurance policies are designed to cover sudden and accidental events, and foundation issues are no exception. If the damage to the foundation results from a covered peril, such as a fire, explosion, or impact from a vehicle or falling object, the associated repair costs are generally covered. For instance, damage stemming from a burst pipe causing soil washout beneath the foundation would typically be covered because the burst pipe is a sudden, accidental event related to the home’s plumbing system.

However, many common causes of foundation damage are explicitly excluded from standard homeowner’s insurance policies. Earth movement, including damage from earthquakes, landslides, or mudslides, is generally not covered, often requiring a separate earthquake insurance policy or endorsement. Sinkholes are also frequently excluded unless specific sinkhole coverage is purchased, which may vary by state. Damage resulting from the natural settling, shrinking, bulging, or expansion of the home or the soil around it is typically considered normal wear and tear and is excluded from coverage.

Moreover, foundation damage due to neglect or a lack of maintenance, such as issues arising from poor drainage or unrepaired plumbing leaks that develop gradually, is not covered. This also applies to damage from faulty construction or design, which is considered a pre-existing issue rather than a sudden, accidental event. Flood damage, defined as rising water from outside the home, is universally excluded from standard policies and necessitates a separate flood insurance policy, typically obtained through the National Flood Insurance Program (NFIP). Damage from subsurface water, such as groundwater seepage, is also generally excluded unless it originates from a sudden, accidental discharge within the home’s plumbing system.

Investigating Your Policy and Preparing a Claim

Before initiating a claim for foundation damage, a homeowner should meticulously review their insurance policy to understand its specific terms and limitations. Locate the “Dwelling Coverage” (Coverage A) section, which outlines what is protected, and carefully examine the “Exclusions” section, where specific perils not covered are listed. Look for any endorsements or riders that may have been added, such as water backup and sump pump overflow coverage, or earthquake endorsements, as these can significantly alter what is covered.

Take clear, high-resolution photos and videos of all affected areas, including wide shots for context and close-ups of specific cracks or displacements. Include dates and times with your documentation to establish a clear timeline of discovery. Maintain a detailed written log of observations, noting the location and extent of all damage.

Obtaining professional assessments from structural engineers or qualified foundation repair specialists is also highly recommended. These professionals can help identify the precise cause of the foundation damage, which is crucial for insurance purposes, and provide repair estimates. Their expert reports can serve as valuable evidence to support your claim, particularly when the cause of damage is not immediately obvious.

The Claims Process for Foundation Damage

Once you have thoroughly documented the damage and gathered professional assessments, the next step is to officially notify your insurance company. This can typically be done by calling their claims department or using their online portal. Provide them with an initial description of the damage and its suspected cause, along with your policy number. Timely notification is important to ensure compliance with policy requirements.

After your notification, the insurer will typically assign a claims adjuster to investigate the damage. The adjuster will visit your property to assess the cause and extent of the foundation issues. During this visit, provide them with all the documentation you have prepared, including photos, videos, detailed notes, and any reports or estimates from structural engineers or foundation specialists.

Following their assessment, the insurance company will issue a decision regarding your claim, which may be an approval, a partial approval, or a denial. Carefully review the decision letter to understand the reasons provided by the insurer for their determination, especially if the claim is denied. If the claim is approved, the process will move towards getting the repairs done and receiving payment, typically minus your deductible. If the claim is denied, you may have avenues such as filing an internal appeal with the insurer, providing additional supporting evidence, or contacting your state’s department of insurance.