Is My Foundation Covered by My Homeowners Insurance?
When you purchased that homeowners insurance policy, you probably had issues like wall and floor cracks in mind. You were hoping that if a disaster such as a flood or even a fire damaged your home, your policy would kick in and cover any damages.
Sorry to disappoint you, but that’s not always the case!
This is especially true of foundation repair. When your foundation is damaged, your homeowner’s insurance policy might not help much.
Most homeowner’s insurance companies deliberately exclude foundation repair from their policies for two reasons.
Most foundation damages are caused by construction defects
Insurance companies are aware that most foundation damages, particularly in older homes, are caused by poor design and engineering. Many older homes were not built to withstand movements in the soil which is a common problem here in the Fort Worth area. Thus, most foundation damages are likely to be a result of construction flaws rather than disasters. Homeowner’s policies typically don’t cover construction defects.
Homeowners insurance does not cover maintenance and repair
This is a little like expecting your auto insurance provider to cover worn tires and belts. Auto policies cover disasters such as collisions. Tires are for you to maintain and replace as necessary. The same applies to your home’s foundations. You are solely responsible for maintaining you foundation.
Certain foundation damages might be covered
If your home’s foundation is damaged, your homeowner’s insurance may or may not cover the repair. Depending on your insurance provider, and policy you may be covered for:
- Earthquake damages – Damages caused by earthquakes are generally covered, though not by all insurance providers. Check with your insurance company to find out about your particular policy.
- Damages caused by flooding – Your policy may also cover damages resulting from floods, especially if you purchased additional coverage.
- Water damage from plumbing failures – If there is a problem with your plumbing and the resulting leak causes foundation damage, some policies might cover the repairs.
Measures you can take to protect yourself
Start by demanding a foundation warranty when purchasing a new home. These types of warranties typically cover unforeseen foundation problems for up to ten years but in some cases, they can be extended when the original coverage period ends.
If your foundation requires repairs after the original warranty has ended, you should be sure to hire a foundation repair company that offers a warranty on their work. Here at Atlas Foundation Company, we offer a lifetime, tranferable warranty on all of our foundation repairs.
Secondly, you may want to consider purchasing supplemental coverage specifically for the foundation. Supplemental coverage will protect you in the event your foundation suffers damages that are not covered in your original homeowners policy.
Lastly and most importantly, take the necessary steps to prevent foundation damage by addressing any warning signs at an early stage. If you think your home foundation may have problems, you should have it inspected by a reputable foundation repair contractor to prevent the problem from getting any worse. Call Atlas Foundation Company at (817) 478-1181 to schedule a no-obligation estimate to repair your home’s foundation.