Does Homeowners Insurance Cover House Foundation Repair?
Home insurance may cover foundation repairs, but only for certain types of damage, like tornado or fire damage.
Most home insurance policies won't cover foundation damage caused by things like pests, earthquakes or tree roots.
When does home insurance cover foundation repair?
Homeowners insurance may pay for foundation repairs if the damage happened because of a sudden and accidental event. These events, sometimes called covered perils in your insurance policy, include things like weather damage or a fire.
- Fire
- Tornados
- Windstorms or hailstorms
- Lightning strikes
- Falling objects
- Collapse from the weight of snow, ice or sleet
- Water damage from plumbing, heating or air conditioning overflow
- Damage caused by vehicles
- Gas line explosions
- Vandalism
- Riots or civil disturbances
- Volcanic eruptions
- Damage caused by aircraft
If you bought extra coverage such as sewer backup or sump pump failure coverage, your insurance company may cover foundation damage caused by those problems.
When does home insurance not cover foundation repair?
Home insurance companies usually won't cover foundation repair if the damage comes from neglect or an event not included in your policy, unless your policy follows what are called open peril rules. With open peril rules, you're covered for damage caused by most events unless your policy specifically says it doesn’t cover a type of event.
Some common events that insurance companies won't cover include:
- Existing soil issues: If your home was built on soil that wasn't correctly prepared for construction, your foundation can shift. Unfortunately, most insurance companies won't cover damage from bad construction.
- Earthquakes: Standard home insurance policies won't cover damage caused by earthquakes. If an earthquake causes damage to your foundation, you'll have to pay for repairs yourself unless you bought earthquake insurance.
- Pests: Home insurance doesn't cover damage to your property from pests like mice, rats, termites and other insects.
- Age and wear: It's normal for foundations to shift and crack as the home gets older and the ground shifts beneath the home. This type of damage isn't covered by insurance companies, so you'll have to pay for repairs on your own.
- Tree roots: Tree roots growing beneath your foundation and cause the cement to crack or warp. This damage isn't covered by your home insurance policy because insurance companies expect you to monitor the trees on your property and remove them if they threaten your home in any way.
How to file a home insurance claim for foundation damage
The average price of foundation repair ranges from $2,220 and $8,112, and filing a claim with your insurance company can help you lower what you pay from your own savings. If your foundation is damaged and your insurance policy covers it, you should file a claim with your home insurance company as soon as possible.
Contact your insurance company or agent
Before you do anything else, contact your insurance company or your insurance agent and tell them you need to file a claim. The claims department at your insurance company or your insurance agent can guide you through the process and help you fill out the needed paperwork.
The sooner you start the claims process, the sooner you'll likely get the money you need to repair your foundation.
Document the damage
Take pictures of the damage and document as much of it as you can after talking to your insurance company. Show visible foundation damage, if you can. Be sure to also take photos of cracked drywall, damaged supports and other issues, if you find them.
The more proof of the damage you can send to your insurance company, the better. This helps them better understand your claim and makes it easier to see how much damage was done.
Protect your home from additional damage
If the foundation damage is severe and puts your home at risk of water damage or other issues, you can make temporary repairs to keep the damage from getting worse.
Tips for making temporary repairs
- Focus on immediate issues, such as preventing water from getting into your home.
- Cover holes in exterior walls with tarps or plywood to keep pests out.
- Clean up puddles and standing water to keep damage from getting worse.
- Keep all receipts for any tools and equipment used for repairs.
If you make repairs that completely fix the foundation damage, your insurance company may lower your rates.
Meet with the insurance adjuster
An insurance adjuster will visit your home to inspect the damage and then send their findings to your insurance company. The company uses this report to figure out how severe the damage is and how much money they should give you. Try to be there when they do their inspection. This gives you a chance to point out damage they might not notice.
Get estimates from local contractors
It's a good idea to get estimates for any needed repairs from local contractors before you accept any money from your insurance company. By getting estimates, you'll be able to review your insurance company's offer and decide if the payment amount is fair.
If the offer is too low, you can appeal the decision and maybe get a bigger settlement. Send copies of any estimates your contractors give you to your insurance company, if needed.
Accept or appeal the decision
Once your insurance company makes you an offer, you can either accept it and use the money they pay you to repair your foundation or appeal the decision. When you appeal, your insurance company may ask you to share more proof of the damage and estimates you got from contractors.
They'll review your claim again and let you know if they believe the original offer is fair or if they're willing to give you a bigger payment.
What to do if your foundation damage isn't covered
If your insurance company doesn't cover your foundation damage, you'll have to pay for repairs yourself. In this case, be sure to get quotes from several contractors before you schedule repairs. Compare the quotes closely, looking at how they bill for their time, the estimated cost of materials, and other similar factors.
Choose the contractor that you are most confident in, rather than picking the cheapest.
When it comes to foundation repair, working with a more experienced contractor is usually the best way to get quality repairs.
How to prevent foundation damage
Though you can't prevent foundation damage from happening all the time, there are things you can do to keep your home safer and lower your chances of having to file a foundation damage claim.
- Keep your home exterior free from debris. Shrubs, leaves and other plant matter can attract rodents and pests. Keep the area around your home's foundation clear of debris to keep pests from coming inside.
- Inspect your foundation often. Watch for cracks in the concrete if it's visible, check for warping in your siding, and other signs of damage. If you notice anything that doesn't look right, call a contractor right away.
- Maintain your drainage. Make sure water drains away from your house and doesn't pool around the base of your home. Clean your gutters or install them if your home doesn't have any to direct water away from your home.
- Monitor soil moisture levels. Both overly wet and overly dry soil can damage your foundation. Use a moisture meter to monitor moisture levels in your soil. If it's too wet, you may need to speak with a contractor. If it's too dry, you may need to add mulch around your home to keep the soil cooler and wetter.
Frequently asked questions
How expensive is foundation repair?
On average, foundation repair costs between $2,220 and $8,112. If you catch the damage early, your repairs will typically cost less. But if the damage is severe, you'll pay more.
Do foundation repairs lower a home's value?
Foundation repairs done by a licensed contractor don't lower a home's value. They can, instead, maintain or even improve a home's value, especially if you bought the home with a damaged foundation at a lower price.
Will filing a foundation repair claim raise my insurance rates?
Filing a claim with your home insurance company for foundation repairs could raise your rates. But filing a claim for any type of damage can end up raising your rates when your policy renews. Talk with your insurance company to learn how they use claims as part of rate calculations.
How can I make sure my home insurance covers foundations?
The best way to make sure your home insurance covers foundations and foundation repairs is to talk to your insurance agent. They'll review your policy and tell you if your policy covers foundation repairs and the types of damage that qualify for a claim. If you understand insurance lingo, you can review your policy yourself by logging into your account.
Does home insurance cover foundation movement?
Home insurance doesn't usually cover foundation movement caused by the home's age or settling. However, if the movement happened because of a tornado or other covered disaster, your insurance should cover repairs. Talk to your insurance agent to see what your policy covers.
Sourcing
Information about the price of foundation repairs has been sourced from Angi.com.
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
