Homeowners insurance will cover foundation repair if the cause of the damage is covered in your policy. But the damage caused by earthquakes, floods and the settlement and cracking of its foundations over time is not covered. Your base is covered by homeowners insurance just like any other part of your home. However, unlike other parts of your home, many causes of foundation damage are explicitly excluded from standard policies.
Familiarize yourself with the many different events that can cause foundation damage and whether or not your homeowners policy will cover it. To determine if your homeowners insurance policy will cover your foundation, you must determine what caused the problem you are having. In some cases, it will be obvious, such as damage from a tornado or earthquake. If the foundation problem is caused by a covered hazard mentioned in your policy, chances are that your home insurer will cover the cost of the repairs.
Fortunately, flooding basements from an internal source is almost always covered by homeowners insurance. For example, 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.