Homeowners insurance can provide coverage for foundation repair if the cause of the damage is included in your policy. However, certain events such as earthquakes, floods, and the gradual settling and cracking of foundations are not covered. Your base is protected by homeowners insurance just like any other part of your home, but many causes of foundation damage are excluded from standard policies. It is important to understand the various events that can lead to foundation damage and whether or not your homeowners policy will cover them.
To determine if your homeowners insurance policy will cover your foundation, you must first identify what caused the problem. In some cases, it will be obvious, such as damage from a tornado or earthquake. If the foundation issue is caused by a hazard mentioned in your policy, then your home insurer will likely cover the cost of repairs. Fortunately, flooding basements from an internal source is almost always covered by homeowners insurance.
For instance, if pipes in the ground surrounding the house leak and break the foundation, the underlying cause is a covered plumbing problem. The foundation leak would be covered. While homeowners insurance would generally not pay for damaged pipes in this situation, it would pay for water damage as a result of the foundation leak, as well as repairs to the damaged foundation itself. For example, if a pipe breaks around the home and resulting water damage affects the foundation, a homeowners insurance policy could cover the damage to the structure that occurred due to the incident. In addition, housing policies do not offer foundation repair insurance when the foundation problem is the result of normal wear and tear.
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