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Your home's foundation supports the entire structure, so repairing foundation damage quickly is essential. Foundation repair costs $2,188 to $7,884 on average, but can cost up to $100,000 depending on the extent of the damage, according to home care website Angi.
Homeowners insurance generally pays for foundation repairs that result from covered events. However, if the cause of the damage isn't covered in your policy, repairs probably won't be either. Read to find out when insurance covers foundation repair and how to file a claim.
Does Homeowners Insurance Cover Foundation Repair?
Homeowners insurance generally covers foundation repairs if the damage was caused by an event covered in your policy. Most standard home insurance covers your home's structure against fire, smoke, wind, hail, lightning and some kinds of water damage. Coverage typically includes other structures on your property too. For example, if your detached garage suffers foundation damage from a covered event, home insurance usually pays to repair it if you file a claim.
To find out what your homeowners insurance covers, read the detailed policy contract you received when you bought your insurance. If you don't have a copy of your policy, contact your insurance company or visit their website to get one. Review the policy contract carefully for exclusions. Ask the insurance carrier to clarify anything you don't understand.
Learn more >> What Is Not Covered by Homeowners Insurance?
When Does Homeowners Insurance Cover Foundation Repair?
In general, home insurance covers damage to your foundation from the following events:
- Vehicle crashing into your home
- Falling trees or tree branches
- Explosions (such as from a gas leak)
- Fire or smoke
- Wind or severe storms
- Vandalism
- Hail
- Water damage from snow, rain or ice
- Water damage from a burst pipe
When Doesn't Homeowners Insurance Cover Foundation Repair?
Situations where home insurance usually doesn't cover foundation repair include:
- Faulty construction: Ordering a professional home inspection before you buy a home can help you identify foundation problems due to poor construction, which home insurance won't cover.
- Floods: For protection against foundation damage due to floods, you'll need to purchase flood insurance. Before you buy, review the policy to clarify what flood insurance does and doesn't cover. For example, flood insurance may not cover damage to your foundation due to shifting soil.
- Earthquakes: Standard home insurance doesn't cover earthquake damages, but you can buy earthquake insurance that does. In addition to paying for foundation repair, earthquake insurance may also cover the cost of upgrading or modifying your damaged foundation to meet current building codes.
- Water backup: Foundation damage due to water backing up from your septic tank, drains, sewer or sump pump usually isn't covered by home insurance. However, you can typically add water backup insurance as an endorsement to your homeowners policy.
- Sinkholes: In some states, sinkhole insurance is part of standard homeowners insurance, but in most places, you won't be covered unless you buy sinkhole coverage separately. Review coverage details before buying sinkhole insurance. Some sinkhole policies don't cover foundation repairs unless the entire foundation collapses. Others cover natural sinkholes or man-made sinkholes, but not both.
- Animals or insects: Foundation damage from pests or vermin, such as termites or rats, isn't covered by home insurance. However, damage caused by large, wild animals such as moose or bears may be.
- Normal wear and tear: Home insurance doesn't pay to repair foundation damage due to normal wear and tear or to neglecting home maintenance. For instance, if your plumbing fails because you haven't maintained it and your foundation is damaged, your insurance company may not cover foundation repairs.
How to File a Claim for Foundation Repair
If you believe your home insurance covers your foundation repair, here's how to file a claim.
- File a police report if any crime occurred. For instance, if the damage was due to vandalism or arson.
- Take photos or videos of the damage. It's important to document what occurred for the insurance claims adjuster.
- Contact your insurance company. You can typically start a claim online, in the insurance company's mobile app or by calling your insurance provider. You'll be assigned a claims number and a claims adjuster who will handle your claim.
- Make critical repairs. You can make immediate repairs if necessary to prevent additional damage to the foundation. Keep copies of receipts for any repair expenses.
- Get estimates. Ask licensed contractors to provide quotes. The insurance adjuster may use these figures to assess the cost of repairs.
- Receive your claim payout. Your deductible will be subtracted from the payout amount. The insurance company may pay you directly or, if you have a mortgage, may pay your lender.
Learn more >> Most Common Homeowners Insurance Claims
How to Prevent Foundation Damage
Damage to your home's foundation can occur gradually. Unfortunately, repairing that type of damage probably won't be covered by home insurance. Some simple preventive measures can help you maintain your home's foundation and catch potential problems before pricey fixes are needed.
- Help keep insects and rodents out of your home by trimming back plants near your foundation.
- Clean and maintain your gutters and downspouts. Ensure that downspouts direct water several feet away from the home's foundation.
- Use proper drainage to prevent water from accumulating near your foundation. That may mean grading the surrounding soil to slant away from your home or installing drains.
- Avoid planting large trees or bushes near your house. Roots can cause foundation damage. You may need to remove trees whose roots are too close to the house.
- Regularly inspect your home for possible signs of foundation problems. These can include cracks around doors and windows; cracks in walls, bricks or concrete; doors or windows that don't close evenly or floors that start to slant.
- Avoid overly dry soil. During hot, dry weather, water the ground around your foundation with a hose. Overly dry soil can cause foundation problems.
The Bottom Line
Homeowners insurance can provide peace of mind by helping you pay for covered damages to your foundation. Concerned about the cost of your home insurance? Increasing your deductible, bundling your home and auto insurance, and shopping around for homeowners insurance can help reduce your premiums.
Improving your credit score may also help you save money on home insurance. Many insurance companies review your credit-based insurance scores when setting your premiums. Although these scores differ from your consumer credit scores, they're calculated using similar data from your credit report. Paying down debt and paying your bills on time can help boost both types of credit scores, which could mean lower home insurance premiums.