Does Home Insurance Cover Foundation Damage?

Introduction

Foundation damage can be costly to repair, and understanding when your homeowners insurance covers it is important for protecting your investment.

When Foundation Damage May Be Covered

Foundation damage may be covered if it results from a covered peril, such as:

• Burst pipes causing water damage
• Fire damage
• Explosion
• Falling objects

When Foundation Damage Is Typically Excluded

Foundation damage is typically excluded if it results from:

• Normal settling or shrinkage
• Earth movement (earthquakes, landslides)
• Poor construction or design
• Normal wear and tear
• Gradual deterioration

Understanding Exclusions

Most policies exclude damage from earth movement, which includes settling, shifting, and other ground-related issues that commonly cause foundation problems.

Additional Coverage Options

Some insurers offer optional coverage for foundation issues, though this is typically limited and may have specific requirements.

Key Takeaways

• Foundation damage from covered perils may be covered
• Damage from settling or earth movement is typically excluded
• Review your policy to understand specific coverage
• Consider additional coverage if needed

Next Steps

If you have foundation concerns or damage, review your policy and consult with your insurance agent to understand your specific coverage.