What Causes Are Typically Covered?
Insurance may cover foundation damage when the cause is sudden and accidental:
- Burst plumbing that erodes soil under the foundation
- Vehicle impact hitting the foundation wall
- Explosion or fire damage affecting the foundation
- Sudden sinkhole collapse (varies by policy and state)
- Falling trees or debris that damage the foundation
The key word is sudden. If a pipe has been leaking for months and slowly undermined your foundation, the insurer may deny the claim because you should have noticed and fixed the leak sooner.
What Causes Are Typically NOT Covered?
Standard policies exclude foundation damage from:
- Normal settling and soil movement
- Expansive clay soil shrinking and swelling
- Poor original construction
- Tree root damage
- Flood water (requires separate policy)
- Earthquake (requires separate policy or endorsement)
- Neglected maintenance
This list covers probably 90% of foundation problems I see. Settling, soil issues, and age-related cracks are all on the homeowner.
Do I Need Flood Insurance for Foundation Coverage?
If water from outside the home caused your foundation damage, standard homeowners insurance will not cover it. Rising groundwater, flash floods, and storm surge all require a separate flood insurance policy through the National Flood Insurance Program or a private insurer.
Flood insurance for foundations has limits. It typically covers damage to the foundation itself but may not cover the full cost of repairs or improvements beyond pre-loss condition.
What About Earthquake Coverage?
Earthquake damage to foundations is excluded from standard policies. In seismic zones, you can purchase earthquake insurance as a separate policy or endorsement. Deductibles are typically high (10-20% of the dwelling coverage), but the coverage can be worthwhile if your home sits on unstable soil or near fault lines.
How to File a Foundation Damage Claim
If you believe your foundation damage was caused by a covered event:
- Document the damage with photos and video immediately
- Get a professional inspection to identify the cause
- Obtain at least two repair estimates
- File the claim with your insurance company
- Request an adjuster visit to assess the damage
Be honest about what happened and when you noticed the problem. Insurers investigate claims and will deny coverage if they find evidence of pre-existing damage or misrepresentation.
What If My Claim Is Denied?
Claim denials are common for foundation damage. If you believe the denial was wrong, you can:
- Request a detailed explanation of the denial reason
- Get an independent inspection supporting your position
- File an appeal with the insurance company
- Contact your state insurance commissioner if the appeal fails
- Consult an attorney specializing in insurance disputes
Public adjusters can help navigate disputes, but they take a percentage of any settlement. Weigh that cost against the potential benefit.