When Does Homeowners Insurance Cover Foundation Repairs?

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Does Homeowners Insurance Cover Foundation Repair?

Your home’s foundation is crucial to its structural integrity, so addressing any damage promptly is essential. Foundation repair costs can range from $2,188 to $7,884 on average, but in severe cases, it can go up to $100,000, according to Angi. Homeowners insurance typically covers foundation repairs resulting from covered events. However, if the cause of the damage isn’t included in your policy, the repairs likely won’t be covered. Read on to learn when insurance covers foundation repair and how to file a claim.

When Does Homeowners Insurance Cover Foundation Repair?

Homeowners insurance generally covers foundation repairs if the damage is caused by an event listed in your policy. Standard home insurance usually covers your home’s structure against fire, smoke, wind, hail, lightning, and certain types of water damage. This coverage often extends to other structures on your property. For instance, if your detached garage suffers foundation damage from a covered event, your home insurance will typically pay for the repairs if you file a claim.

To understand what your homeowners insurance covers, review the detailed policy contract you received when you purchased your insurance. If you don’t have a copy, contact your insurance company or visit their website to obtain one. Carefully review the policy for exclusions and ask your insurance carrier to clarify anything you don’t understand.

When Doesn’t Homeowners Insurance Cover Foundation Repair?

There are situations where homeowners insurance usually doesn’t cover foundation repair:

• Faulty construction: A professional home inspection before purchasing a home can help identify foundation problems due to poor construction, which home insurance won’t cover.
• Floods: You’ll need to purchase flood insurance for protection against foundation damage due to floods. Review the policy to understand what it covers, as it may not include damage from shifting soil.
• Earthquakes: Standard home insurance doesn’t cover earthquake damage, but you can buy earthquake insurance that does. This may also cover the cost of upgrading your foundation to meet current building codes.
• Water backup: Damage from water backing up from your septic tank, drains, sewer, or sump pump usually isn’t covered. However, you can add water backup insurance as an endorsement to your policy.
• Sinkholes: In some states, sinkhole insurance is part of standard homeowners insurance, but in most places, you need to buy it separately. Review the coverage details before purchasing.
• Animals or insects: Damage from pests like termites or rats isn’t covered, but damage from large wild animals may be.
• Normal wear and tear: Home insurance doesn’t cover foundation damage due to normal wear and tear or neglecting home maintenance.

How to File a Claim for Foundation Repair

If you believe your home insurance covers your foundation repair, follow these steps to file a claim:

1. File a police report if any crime occurred, such as vandalism or arson.
2. Document the damage with photos or videos for the insurance claims adjuster.
3. Contact your insurance company to start a claim. You can usually do this online, through a mobile app, or by calling your provider. You’ll be assigned a claims number and an adjuster.
4. Make critical repairs to prevent further damage. Keep receipts for any repair expenses.
5. Get estimates from licensed contractors. The insurance adjuster may use these to assess repair costs.
6. Receive your claim payout. Your deductible will be subtracted from the payout amount. The insurance company may pay you directly or, if you have a mortgage, may pay your lender.

How to Prevent Foundation Damage

Preventing foundation damage can save you from costly repairs. Here are some tips:

• Trim back plants near your foundation to keep insects and rodents out.
• Maintain your gutters and downspouts, ensuring they direct water away from your foundation.
• Use proper drainage to prevent water accumulation near your foundation.
• Avoid planting large trees or bushes near your house to prevent root damage.
• Regularly inspect your home for signs of foundation problems, such as cracks or uneven floors.
• Water the ground around your foundation during hot, dry weather to prevent overly dry soil.

The Bottom Line

Homeowners insurance can provide peace of mind by covering foundation repairs resulting from covered events. If you’re concerned about the cost of home insurance, consider increasing your deductible, bundling your home and auto insurance, and shopping around for better rates. Improving your credit score can also help lower your premiums, as many insurance companies review your credit-based insurance scores when setting rates.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We’re here to help you with all your mortgage needs!

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