Will Home Insurance Help with My Foundation Repairs?

The foundation of the home isn't something most homeowners think about very often. But, it is the most important component of the home. Without it, every wall, ceiling, and other surfaces are at risk.

Foundation damage can occur for a variety of reasons. And, it is not always a type of coverage that your home insurance plan will pay to repair. If you have foundation problems, here are a few things you need to know about these repairs and your home insurance.

Is Foundation Damage Covered?

In most situations, foundation damage is not covered by a standard home insurance policy. Unless your plan specifically states that your foundation is protected, it generally is not. This includes broken foundations, cracks, or even crumbling.

Why isn't it covered? Generally, home insurance is meant to provide financial coverage for losses that are unavoidable. Most types of foundation damage are brought on by poor maintenance and upkeep of the structure or, in the case of a new home, poor workmanship at the time of installation. As a result, your home insurance may not apply.

What to Do if You Need Repairs

If your home's basement or exterior shows signs of foundation damage, such as cracks, lines, or areas of sagging, take action as soon as possible. You'll need to talk to a structural engineer to determine the underlying cause. If you have coverage for certain incidents that can cause foundation issues like a damaged water line from a storm, the damage could be covered under that component of the plan. In other cases, you may have to finance the repairs on your own.

In the situations where the home is inhabitable due to foundation issues, Loss of Use coverage may apply. This type of coverage provides reimbursement for your lodging and expenses to use while the repairs are completed. There are, however, limitations on how long and the type of expenses covered.

While your home’s foundation is very important to maintaining the structure, home insurance isn't usually the best tool for paying for the damage. If you have foundation issues, you should contact your insurance provider to find out if coverage is available based on the specifics of your situation.