Does homeowners insurance cover foundation repairs?

Home insurance may cover foundation repairs, but it depends on what causes the issue. Damage resulting from covered events like a fire, lightning, or an explosion should be covered. But if damage is caused by an incident that standard policies do not cover — like a flood — you might have to pay for repairs on your own.

When does homeowners insurance cover foundation repairs?

As with most types of property damage, home insurance covers damage to your foundation when it's caused by a covered risk (called a peril). For instance, standard home policies provide protection from fires. So, if your foundation is damaged due to a fire, home insurance will typically help pay for repairs.

The most common type of home insurance policy, an HO-3, covers damage to your home caused by any risk that is not specifically excluded. Common risks include:

• Fire and lightning
• Hail and windstorms
• Explosions
• Riots and civil commotion
• Aircraft and vehicles
• Smoke
• Malicious mischief and vandalism
• Volcanic eruptions
• Falling objects
• Weight of ice, snow, or sleet
• Accidental discharge of water or steam
• Tearing, cracking, burning, or bulging of certain household systems
• Freezing of household systems
• Artificially generated electrical current

Even when foundation damage is the result of a covered risk, the event has to be sudden and accidental – not gradual. In some cases, the cause is obvious, such as a car crashing into your home or a tornado blowing debris that cracks your foundation. But if your foundation suddenly collapses, your insurance company will likely investigate to figure out if a covered event was the cause.

In contrast, other situations, like a crack appearing due to normal soil or temperature fluctuations, are unlikely to be covered.

When is foundation damage not covered by insurance?

Home insurance does not cover foundation repairs if damage is caused by an excluded risk. These include:

• Normal wear and tear
• Neglect
• General settling or movement of land
• Groundwater seeping in
• Flooding
• Sewer backups
• Earthquakes, sinkholes, and mudslides

Types of insurance that may cover foundation issues

While certain risks are almost always excluded from standard policies, you may be able to add coverage to your policy as an endorsement or purchase a separate policy for broader financial protection. Here are two types of insurance that may be helpful in the event of foundation damage:

• Flood insurance: Flood insurance typically covers damage caused by storm surges that affect at least two or more acres or properties. If you have a basement, coverage may be limited to structural foundation elements like the floors and walls.
• Earthquake insurance: If an earthquake causes a crack in your foundation, this coverage typically helps pay to fix the concrete. However, if the earthquake causes the dirt underneath the house to shift or collapse, the policy may not pay to "re-fill" or stabilize that dirt.
• Sinkhole insurance: Sinkhold insurance generally covers sudden damage to your home's structure (like the foundation) if a sinkhole opens up. In some high-risk areas, this coverage might be required by law. It helps pay for the expensive process of stabilizing the ground and fixing the physical damage to your house.

Steps to take if foundation damage occurs

If you believe or have confirmed that your policy covers your foundation, it’s important to take the following steps: 

1. Take photos of the damage. 
2. Call your insurer and tell them what happened. 
3. Schedule a time for your insurer to send out an adjuster to look at the damage and create a repair estimate. If possible, have a contractor attend the adjuster’s assessment to offer insight into pricing, repair technicalities, and other issues. 
4. Submit your claim. 

Once your insurer has all the information it needs to make a decision about your claim, it likely has a state-mandated deadline by which it must inform you of its decision. Your insurer will pay out your claim according to state laws and regulations. For example, you may receive your claim payment in two checks.

Preventive measures to protect your foundation

There are several things you can do year-round to protect your foundation from damage. 

• Make sure the ground around your foundation has proper drainage: Gutters and French drains are some of the methods you can use to ensure the ground around your foundation drains well, as excessive moisture can cause foundation damage. 
• Ensure the ground around your foundation has the proper moisture levels: Just as too much water around your foundation can lead to long-term damage, ground that’s too dry can harm your foundation, too. Dry soil expands and contracts often, leading to cracked foundations. 
• Address root systems around your foundation: Roots from bushes and trees can damage your foundation in two ways. First, roots can pull moisture out of the soil under your foundation, causing unstable soil that can lead to a cracked foundation. Second, tree roots can push up against your foundation and cause cracks. However, not every tree poses a threat. Oaks are more likely to cause damage than pine trees because their root systems are shallow and spread out, whereas pine roots go straight down into the ground. 

Frequently asked questions

What are common causes of foundation issues? 

Foundation problems often result from:

• Improper drainage of surface water and roof runoff
• Soil movement or improper compaction of soil
• Poor construction or workmanship (e.g., poor quality mortar)
• Severe weather conditions
• Design errors or material deficiencies

How can I tell if foundation damage is covered by home insurance?

To find out if your policy covers foundation damage, read through your policy documents carefully. You can typically access these documents through your online account via your insurer’s website or app, or you may have received the documents by mail. If you’d prefer to speak with an expert to get your answer, contact your insurance agent or a customer service representative from your company. 

What are some tips to protect your foundation?

Some of the best ways to prevent foundation issues include:

• Maintaining drainage systems, including sump pumps
• Landscaping your property to divert water away from the foundation
• Investing in preventive measures like sump pump alarms