Does homeowners insurance cover foundation repair?

Once you’ve found a crack, the real question isn’t how bad it looks but why and when it happened. That’s a structural question first and an insurance question second, so this guide draws on the evaluations of our structural contributor, Daniel Mercer.

What is usually excluded, and what can be covered

Slab leaks are the tricky row. A broken pipe can be a covered accidental discharge, while the ground movement it causes, or movement that was already there, may fall under the exclusion. The insurer will assess each part under the policy.

From the field: three evaluations

These are real evaluations by Daniel, described with only the state to protect the owners.

Settlement or sudden damage: how it gets assessed

When Daniel evaluates foundation damage that may end up in a claim, he looks at the whole picture rather than any single crack:

• The pattern of the cracks and whether the sides have shifted relative to each other
• Floor levels and any distortion in walls, frames and joints
• Older photos of the house, if the owner has them
• Gutters, downspouts, grading and soil conditions around the house
• Any recent work nearby, on the house or next door

If you can’t tell whether movement is still happening, monitoring the house with instruments over time can settle it. And you can’t tell how old a crack is from its width.

When to hire your own engineer

An independent structural evaluation is worth paying for when walls have moved noticeably, a wall is bowing, you’re unsure the house is stable, or you and the insurer disagree significantly about the cause or the repair. If there’s an immediate risk, make the area safe first and deal with the insurance later. An engineer’s report helps your claim, but it doesn’t guarantee coverage.

Separate coverages worth knowing

None of these is general foundation coverage. Each answers one specific cause.

• Mine subsidence. In parts of Pennsylvania and Ohio, ground movement from old underground mines is a real risk, and homeowners policies exclude it under earth movement. Both states run their own programs. Pennsylvania’s Mine Subsidence Insurance program is offered through the Department of Environmental Protection and has paid more than $30 million in claims since 1961. In Ohio, the coverage is mandatory in 26 counties and optional in 11, and pays up to $300,000 or the dwelling’s insured amount, whichever is less.
• Earthquake. Sold separately or as an endorsement; not part of a standard homeowners policy.
• Flood. A separate flood policy, NFIP or private. Damage caused by a qualifying flood may fall under this policy, subject to its terms. Not all erosion, groundwater or foundation movement counts as flood damage.
• Service Line Coverage. Can cover certain buried utility lines on your property, such as water or sewer lines. It’s about the pipe, not the foundation.
• Equipment Breakdown. Covers internal failure of covered equipment, not structural damage.

If you’re dealing with settlement rather than an insurance question, our foundation settling guide explains the causes and repair options, and the repair cost guide covers what the work usually costs.

Coverage depends on your policy wording and your state. Confirm with your insurer or agent before making a decision.