Does Homeowners Insurance Cover Home Foundation Repairs?

Foundation is the most critical part of any home. It is the base where the weight of the house rests, and if there is any damage to the foundation, it should be repaired immediately. The foundation of the house sits directly on the ground, and many environmental factors can damage this component. Some of the factors that can cause damage to the environment include water buildup, leakage, temperature changes, tree roots, or poor build quality. The main question is whether the homeowner’s insurance covers home foundation repairs. Let us find out in the sections below.

Are Foundation Repairs Covered?

Home Foundation Repair

In some cases, the foundation repairs are covered by the home insurance policy. You must check if your insurance policy has Dwelling Coverage or Coverage A. If you have any of these covers, then your foundation repair would be covered, provided that the cause of damage is covered perils. The coverage for the foundation repairs is applicable in case of the following instances –

  • Damage due to lightning strike
  • Damage due to falling trees
  • Damage due to tornados, hailstorms, or windstorms
  • Damage due to sudden water leakage, like in case of a pipe burst
  • Damage due to fire or vandalism.

It is important to note that the insurance will not cover the damage to the foundation caused by negligence or inferior build quality. Also read about: Can Home Insurance Be Transferred To a New Owner?

Is the Settling or Foundation Crack Covered?

Some people may experience foundation cracks or settling. It should be noted that most homeowners’ insurance does not cover these instances. These damages may usually be counted under the umbrella of routine maintenance, and hence they are excluded from the cover. However, there is an additional clause here. If you notice foundation cracks or settling due to unexpected events like fire or windstorm, the repairs may be covered, subject to approval from the investigator. Also know: How is Home Insurance Calculated?

What About Damage From Foundation Movement?

Some homeowners may also experience foundation movement or sagging floors. This usually happens because of the compacting soil under the home. The primary reason for such an occurrence is the earthquake. So, if an earthquake in the area resulted in foundation damage, then that would not be covered by the standard homeowner’s insurance. You would need a separate cover for the earthquake. A flood may also cause the floor sagging, and if that is the root cause, you would need flood insurance coverage for your property. Know When Do You Need Home Insurance?

Final Verdict

This was all about the homeowner’s insurance coverage extending to foundation repair. You would have gotten some valuable insights into the foundation repair. You should also note that the damage to the foundation due to earthquakes or flooding may require additional endorsements on the policy. The standard homeowner’s insurance doesn’t cover the damage to the foundation caused by earthquakes or flooding. We have covered all the generalized terms and conditions here. The actual coverage may vary depending on your policy. We recommend checking the policy details to get the most accurate information. If you are still in doubt, you can contact the insurer and clarify the information about the coverage.


Sumit Kumar Yadav has experience analyzing business and finance of big to small companies. Loan, Insurance, Investment data analysis are his key areas.