Your home’s foundation is the structural base of your home. Without a sturdy foundation, your house may settle unevenly, putting the stability and safety of the entire house at risk. But what happens if your foundation gets damaged in some way? Does home insurance cover foundation issues?
Types of foundations
There are many different types of house foundations, but three of the most common are full basement, concrete slab and crawl space.
- Full basement
- Concrete slab
- Crawl space
Full Basement Foundation
A full basement foundation matches the perimeter of the house above. So, if the ground floor is 1,200 square feet, the basement’s square footage will also be 1,200—give or take. As a result, these basements are ideal for additional storage, utilities and potential living areas. Basement foundations are prevalent in the Northeast.
Concrete Slab Foundation
A slab foundation is a flat concrete slab that rests on the ground. As a result, it forms the main floor of the house. Generally speaking, a slab foundation is less expensive to construct because it’s poured in one single piece. However, slabs don’t provide the extra storage space that a basement offers.
Crawl Space Foundation
A crawl space foundation forms a slighty elevated space below a house. It can serve as the main foundation or be added to an existing basement foundation when expanding a home. Depending on how large the space is, a crawl space foundation can provide enough room for storage, a furnace and other equipment.
Common causes of foundation damage
Foundation damage can be caused by a number of different environmental factors. Here are some of the more common ones:
- Water buildup – Water that accumulates under the home’s foundation can wash away the land underneath. This form of erosion can cause the foundation to move.
- Natural disasters – Earthquakes, floods and wildfires can damage your home’s foundation.
- Faulty construction – Uneven slabs, concrete issues and shoddy building materials can all lead to foundation problems.
- Pests – Burrowing animals such as groundhogs, moles and termites could compromise your foundation.
- Tree roots – Large trees that are planted too close to your home can damage your foundation in time.
- Natural settling – Natural settling is one of the most common foundation issues. When the ground settles, minor cracks can form in your foundation.
When does your home insurance cover foundation damage
The dwelling coverage portion of your homeowners insurance will pay for foundation damage in some instances and not in others. It all depends on what caused the damage in the first place. Generally speaking, the cause needs to be sudden and unexpected for your homeowner insurance to kick in.
- Fire
- Natural disasters
- Fallen objects
- Vandalism
Fire
Intense heat from a fire can permanently damage a foundation. Specifically, it can weaken the concrete and the steel reinforcement bars within the concrete, leading to a loss of strength and durability.
Natural Disasters
Events like tornadoes, windstorms and hail count as covered perils in most homeowners insurance policies. Therefore, your home policy will typically pay for repairs if the foundation is affected by one of these events. Damage caused by earthquakes and floods usually aren’t covered by a standard home insurance policy. You may need separate policies for those events.
Fallen Objects
During severe storms, there’s a chance that trees or other objects could fall onto your house. In these scenarios, your home insurance policy is likely to cover the repairs.
Vandalism
Vandalism is another sudden and unexpected event. If someone deliberately damages your home’s foundation, your policy could cover the repair costs. Be sure to document the damage thoroughly when filing a claim with your insurance carrier.
When doesn’t your home insurance cover foundation damage
If the foundation damage wasn’t caused by a covered peril or didn’t stem from a sudden and accidental event, your homeowners insurance policy may not cover it. Here are some scenarios where you may be out of luck.
| Damage That Is Typically Covered | Damage That Is Typically Not Covered |
| Windstorms and tornadoes | Earthquakes and floods |
| Hail | Foundation settling |
| Fallen objects | Normal wear and tear |
| Vandalism | Faulty construction |
Earthquakes and Floods
Most standard home insurance policies don’t protect you against floods or earthquakes. If you live in an area that’s vulnerable to these extreme weather events, you may need to buy additional flood insurance or earthquake insurance.
Foundation Settling
Normally, any damage to your foundation caused by earth moving on its own accord would not be covered by a standard home policy. This includes the sinking, rising or shifting of the earth.
Normal Wear and Tear
With foundations, normal wear and tear (such as poor drainage or old age) can result in small cracks in your foundation. This is considered normal and repairs wouldn’t be covered by most homeowners insurance carriers.
Faulty Construction
Home insurance companies may not cover foundation damage caused by poor workmanship, flawed construction materials, or poor zoning or grading. This is why it’s important to have a thorough home inspection before buying a house.
Additional coverage options
A standard homeowners policy does not cover foundation damage caused by earthquakes and floods. If you want to maximize your protection, you’ll need to buy extra insurance.
First, you should check to see if your home insurance carrier offers endorsements to your policy for damage caused by earthquakes and floods. An endorsement is an optional coverage that you can add to your existing home policy.
If they don’t offer earthquake and flood endorsements, you will need to purchase a separate earthquake policy and a separate flood policy.
How to prevent foundation damage
The best way to prevent foundation damage is to routinely monitor your foundation and then take swift action if you detect a problem. Two things that you should look for are cracks and signs of water damage.
Large Cracks
Small, hairline cracks in concrete foundations usually are not a cause for concern, but more severe cracks can indicate a serious problem. If you see a larger crack, call a foundation professional and ask them to assess your property.
Water Damage
You should also look for signs of water damage around your foundation. Specifically, keep an eye out for leaks, visible moisture on walls or floors, mold growth, and a musty odor in basements or crawl spaces. Over time, accumulating water can lead to erosion and eventually structural damage. Proper drainage and waterproofing are essential for preventing these issues.
How to file a foundation repair insurance claim
If your home has suffered foundation damage from a covered event, you may need to file a homeowners claim. Here are the steps you should take:
