Homeowners insurance typically covers foundation damage caused by a sudden and accidental event. However, routine cracking, settling, and long-term moisture leaks from preventable causes are not.
For example, if a tree falls on your house during a storm, or if a car hits the building and cracks the foundation, these are covered by most standard policies. But if the foundation damage is due to poor construction or neglect, homeowners insurance will not pay for repairs. Contact Foundation Repair Nashville for more information.
Cause of Damage
Anecdotal evidence and the tone of insurer advice materials suggest that foundation damage claims are viewed with a higher degree of scrutiny than other property loss issues. This might be because the cause of the problem can often be ambiguous. For example, a sudden event like an earthquake or water leak might crack your foundation slab, but if the cause isn’t covered by your policy (say because it was caused by long-term settling or poor maintenance), your claim will likely be denied.
To determine coverage, the insurance company will need to thoroughly evaluate the situation and the underlying damage to your home. This is where a detailed record becomes your best ally. Documenting everything from when you first noticed the damage to when you consulted an engineer and when you hired a contractor can help resolve any doubt about causation.
Typically, foundation damage is covered by the dwelling coverage portion of your homeowners’ insurance. The dwelling coverage pays to repair the physical structure of your house and its fixtures, which includes your foundation. However, if your foundation damage also affects your personal belongings, they may be covered under the personal property coverage of your policy.
The most common causes of foundation damage are sudden events that occur outside your control. These include fires, explosions, windstorms/hail, lightning, vandalism, vehicle impact, and sudden water discharge (like a burst pipe). Insurers generally cover any damage to the foundation if it is caused by one of these covered perils.
On the other hand, most insurers exclude any damage to your foundation that is gradual or predictable. This includes any deterioration that is a result of your neglect or normal wear and tear. For instance, a slow plumbing leak that’s been causing foundation damage over time is not usually covered because it’s deemed to be part of your general home maintenance duties (unlike a sudden pipe burst).
For the most part, insurers will send an insurance adjuster to assess and evaluate your foundation damage. They might ask for a report from an engineer or foundation expert as well. It’s a good idea to have your own evaluation done before this visit. This will ensure that you can provide all the necessary information to your insurance adjuster.
Exclusions
Most homeowners insurance policies do not cover foundation damage. However, they often cover other aspects of the home and its contents like plumbing and electrical systems, appliances, and structural damage from natural disasters. Moreover, some insurance companies offer add-on options or specialized structural coverage plans that provide limited protection for your foundation.
Whether or not your insurer covers the repair costs of your foundation depends on what causes the problem. Generally, your insurance company will only cover the cost of repairs when an accident or sudden event leads to the damage. A tree falling during a storm and causing structural shifting, a fire destroying the foundation, or a burst pipe causing water seepage are all scenarios that could potentially trigger an insurance claim.
A slow leak that saturates the soil underneath your foundation over months or years and causing heaving or cracking is considered maintenance and not covered by most policies. Likewise, an insect infestation or rodents chewing through the foundation wood supports is also typically excluded since it’s not a sudden, accidental occurrence that falls into the policy coverage category.
It’s important to read your insurance policy carefully to fully understand the limitations of its coverage. Having a clear understanding of what’s covered will help you avoid any surprises down the road and ensure that your claim is processed correctly.
If you’re unsure about the extent of your insurance coverage, consider asking for a consultation with your agent to go over your policy details. Most insurance agents are happy to answer questions about your specific situation. They can also recommend contractors that are familiar with working with insurance providers, so you’ll have someone on your side who can work with your insurance adjuster to assess the damage and complete the necessary repairs. Additionally, some contractors may offer lifetime warranties for their services, which can increase your home’s marketability and give you peace of mind when selling the house in the future. Some of these warranties require a transfer process or fee, and some have specific conditions that must be met for the warranty to remain in effect.
Filing a Claim
Homeowners insurance covers damage to your foundation and the rest of your home’s structure when it’s caused by a covered peril. Typical perils include fire, natural disasters, and vandalism. However, damage to your home’s foundation that results from a lack of routine maintenance, such as soil erosion or water buildup, is not typically covered.
The best way to determine whether or not your homeowners’ insurance will cover the cost of a foundation repair is to read through your policy documents carefully. You can access these online through your insurer’s website or app, or you might have received them by mail. It’s also helpful to speak with a licensed agent to get more information about your specific situation.
Before filing an insurance claim, you should make any necessary repairs to avoid further damage to your foundation. This might require you to invest in a temporary solution, such as a waterproofing system. You should also document any damage with photographs or video footage. This will help you communicate effectively with your insurance adjuster and strengthen your claim.
After submitting your claim, an insurance adjuster will examine the property and assess the damage to your foundation. They will then make a determination about the coverage you’ll receive. This process usually takes about a month.
If your insurer decides to pay for the repair, you’ll receive a check that covers the cost of the repairs, less your deductible. If your insurance company denies the claim, you can appeal the decision.
In some cases, you can save on your homeowners’ insurance premium by taking preventive measures. These might include installing gutters and French drains, ensuring the ground around your home is properly drained, and regularly inspecting your foundation for cracks or other issues.
Increasing your deductible, bundling your homeowners’ and auto insurance policies, and improving your credit score may also lower your rates. The KC Pier Ship Shape program is a proactive solution that can help keep your home safe and prevent foundation damage. To learn more about this program and how you can use it to lower your insurance costs, contact us today.
Repairs
The insurer’s decision to pay for foundation repairs hinges on the cause of damage. Almost all major homeowners insurance companies (Allstate, State Farm, Farmers, Progressive, and others) explicitly note that standard homeowner’s policies don’t cover foundation cracking or shifting from natural causes. They also note that they won’t cover gradual, predictable events unless they have a sudden cause, like a pipe burst or rainstorm that erodes soil around the house’s slab.
They also won’t pay for the damage caused by a home owner failing to perform routine maintenance, such as termite treatments or removing invasive tree roots. Nor will they cover damage that results from a deliberate act, such as vandalism that targets structural elements.
If a sudden event damages your home’s foundation, you should call a professional for an assessment right away. They can provide you with a detailed record that will be useful when filing an insurance claim. Having this documentation is the best way to convince an insurance adjuster that the issue is covered.
During your consultation with a repair company, you should ask about how long the repairs may take. This will help you plan for whether or not you want to stay in the home while work is being done, and it can give you a general idea of how much to budget for the repair costs.
It’s important to note that if you do have to live in the home while your foundation is repaired, your policy should cover some portion of those living expenses. This is called loss of use coverage, and it’s usually capped at a certain percentage.
Finally, it’s important to remember that if you have a serious problem with your foundation, getting professional repairs is always worth it. This will not only prevent further damage, but it will likely increase your home’s resale value and make it more attractive to prospective buyers. Choosing a trusted local contractor to perform your repairs will ensure that you comply with your insurance provider’s requirements and secure your foundation for the long term. For more information, contact the experts at Hitman Solutions for a free consultation.