Does Insurance Cover Foundation Repair Costs?

Your most valuable asset is typically your home—so it’s worth doing all you can to protect it. The first step in safeguarding your home is getting a home insurance policy with the right coverage and options for your property. It’s difficult to foresee issues, and homeowners often don’t find out that certain damages are not covered until the time comes. When it comes to home foundation repair, there’s a fine line between what’s covered and what’s not.

Foundation Repairs that ARE Covered by Home Insurance

In most policies, homeowner’s insurance doesn’t cover foundation damage. Some carriers offer home foundation-specific riders, but it usually isn’t part of the policy.

As we’ve discussed in previous insights articles, water is a major culprit in home foundation problems.  If you’ve experience home foundation damage due to a water leak, your foundation repair costs may be covered by your insurance. In order to determine the cause of the damage, you’ll need a professional engineering report to prove the cause of damage. This report could save you thousands of out-of-pocket costs.

Foundation Repairs that ARE NOT Covered by Home Insurance

Conversely, home foundation damage that’s caused by settlement not related to water leaks or other covered losses are not typically covered by insurance. Common settlement due to shrinkage is typically a result of shoddy or sub-par building methods or materials and is not covered by insurance. Also, if your home was built on land that the builder knew to be improperly compacted, insurance usually does not cover foundation damages—although, if you have signs of home foundation damage within 10 years of the home being built, most foundation companies offer a guarantee and will cover some (or all) of the cost.

Regardless of the situation, if you notice home foundation damage, you need a professional engineering report from a structural engineer in order to diagnose the cause of damage and recommend a foundation repair plan. If you have questions about engineering reports or foundation repair issues, contact the friendly structural engineers at Crosstown Engineering.

Photo Credit: Steven Martin