Does Home Insurance Cover Foundation Issues?: Reducing Costs

When You Will Have to Pay for the Costs from Your Own Pocket 

In most situations, you most likely won’t be able to count on your policy to cover the costs. It all has to due with what caused the foundation damage. Mostly, if the cause is natural, you will probably have to pay for the repairs yourself.

Here’s a couple foundation damage events that usually aren’t covered by insurance: 

• Normal wear and tear: As years go by, the number of things that need to be fixed around your home increases. Maintaining your home to keep it in good condition is, in the eyes of insurance companies, your obligation—this includes keeping the foundation in order is also your job. If the foundation has cracked due to normal wear and tear, home insurance won’t cover the cost. 
• Natural shifting and earth movement: If damage was caused by a landslide, sinkhole, mudslide, or earthquake, precious few home insurance company will cover the cost of damage.
• Foundation settling: If your foundation cracks have been caused by soil expansion or contraction, don’t count on money from the insurance company. Most companies believe that these things could be avoided with proper home maintenance and won’t cover the costs of repairs. 
• Faulty construction: Usually, insurance companies don’t cover poor workmanship, which is one more reason to do thorough research before hiring any workers. If you have found yourself in this situation, you can only hope that the warranty is still valid. 
• Vermin and termite damage: If your home has been invaded by insects, rodents, or other vermin that has led to foundation cracks, you won’t be able to count on the money. Pest control is a part of regular home maintenance, so insurance companies are less likely to sign off on it.
• Floods: Floods caused by excessive rain or overflowing rivers are not covered. Unless the flood is a result of a broken washing machine or a burst pipe, your policy won’t cover the repairs. 

All in all, the insurance company won’t cover the cost of repairs in cases when this type of situation could have been prevented by regular maintenance.

When Does Your Insurance Policy Covers Foundation Repair Costs?: Check with Your Provider

Your policy should cover the cost of repairs in the case of fire explosions, tornados, lightning and storms, heaving, vandalism, water damage caused by leaking pipes, and flooding caused by a broken washing machine. But every policy is different, so answering this question in a straightforward way is really hard.

Here’s our advice for when you don’t know:

• Read your policy thoroughly and see when it will cover the cost of repairs.
• Get a foundation inspection to get an official list of all the foundation problems you have, and make sure the inspector provides a list of the causes of the issues.
• If the cause of your foundation crack or settlement is not on the list, that’s okay, see what else your insurance provider can do in relation to the problem.

What Are Your Options If Your Foundation Cracks Aren’t Covered by Insurance? 

There are not many things you could do if your insurance policy does not cover your foundation cracks. You can make peace with the situation and pay for the repairs yourself or you can  hire expert contractors in Birmingham, AL, let them inspect your house, and determine the true cause of the damage. If they assess that the problem is a result of poor maintenance, you can pay the contractor to fix it. However, make sure you talk about payment options and financing plans beforehand. Maybe you will learn about a plan you could take advantage of. 

If you don’t have a home insurance policy yet, don’t sign up for the first one that is offered to you. Do your research, see what they offer, read the fine print, check the exclusions, and only then will you be able to make an informed decision. 

In conclusion, everything that could be categorized as poor maintenance won’t make the cut since this kind of problem could be avoided. On the other hand, your policy should cover the damage if it was caused by unexpected events such as burst pipes, storms, or lightning. 

If you can’t count on the money from the insurance company, you still shouldn’t put off repairs. As we mentioned, the problem won’t go away, and chances are that it will become even bigger. After all, you need to remember that the foundation supports your biggest investment—your house—so take the necessary steps ASAP. 

Have a Cracked Foundation? Call the Foundation Repair Experts Near You!

If you have noticed that there are cracks in your foundation, but you are not sure what to do next, contact the local experts at AFS to schedule a free foundation inspection and repair quote to see what your options are.