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Do Home Insurance Companies Cover Foundation Cracks?

Will your insurance policy cover foundation cracks? Find out in which cases you can count on money from your insurance company.

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There are so many reasons homeowners tend to postpone foundation repair. For some, the time is just not right; others have other obligations that seem more urgent. But one very common reason is money. Unfortunately, foundation cracks often don’t wait peacefully until the contractors come to fix them. They widen, cause even more damage, and cause other issues. In the end, repairing everything costs much more than it originally would, which is why it is important to fix the foundation as soon as you notice something is wrong. Although this can require a large sum, luckily there is such a thing as home insurance, which can cover at least some of these costs. Before you get carried away, you need to know that this is only the case when specific issues occur. 

big foundation crack

When Can I Count on My Home Insurance to Cover My Foundation Crack Repair Costs? 

You should know that every home insurance policy is different, so you must check your policy and see which foundation repairs are listed in it. After an expert contractor has inspected your home and found the cause of cracks in the foundation, you need to see whether that cause is on the list in your policy. If not, you will, unfortunately, have to pay for the repairs yourself. Therefore, if you still don’t have a home insurance policy, make sure you read the fine print before you sign up for anything. With that said, your policy needs to cover unpredicted issues that could damage your home, such as explosions, tornados, lightning, storms, heaving, vandalism, and water damage caused by leaking pipes. Most policies do cover these events, but it still doesn’t hurt to go over the options and see which one suits you the most. 

In Which Cases Do Home Insurance Policies Not Cover Foundation Crack Repair Costs? 

As we said, every home insurance policy is different, and you need to find out in which cases yours won’t cover the costs of repairs. Every insurance company has a set of exclusions, and here are the most common ones. 

  • Normal wear and tear: If your home is not brand new, some wear and tear is expected. If you don’t maintain your home’s foundation regularly, the home insurance company won’t cover the cost of repairs. 
  • Natural earth movement: Before you buy your home, do your research and avoid building or buying in a landslide risk area. If your house gets damaged due to natural earth movements such as landslides, sinkholes, and earthquakes, you won’t be able to count on the money provided by the insurance company. Most companies find these factors too risky and do not want to cover them. 
  • Foundation settling: Just as wear and tear, damages caused by foundation settling can be avoided with regular home maintenance. This is why most home insurance companies do not want to cover foundation cracks caused by soil expansion or contraction
  • Faulty construction: When hiring construction workers, make sure you hire a professional and experienced team because the policy won’t cover the cost of repairs if foundation cracks occur due to poor workmanship. If you already found yourself in a situation where your foundation has cracks, you can only count on compensation from the warranty—that is, if the warranty is still valid. 
  • Vermin and termite damage: Another thing that is considered a standard part of the home maintenance process is pest control. This is why home insurance companies do not cover the damage caused by insects, rodents, and other vermin infestations. 
  • Floods: While a lot of companies cover the cost of damage caused by floods that occurred due to leaking pipes or broken washing machines, most of them won’t give you any money if the flood has happened due to the torrential rain or overflowing rivers. 

If you can prevent it, the company won’t cover it. Although this can seem a bit unfair, it is your job to properly maintain your home and thoroughly research the property and risks that come with it before buying it. 

What Should I Do If Foundation Crack Repair Is Not Covered? 

Fixing the foundation can cost a pretty penny, which is why you must have a good home insurance policy. If it doesn’t cover the foundation cracks, you don’t have many other options. You can make peace with the situation and pay for the repairs from your pocket, or you can hire a contractor in Grand Rapids, MI, who may be able to prove the cracks were caused by events that are normally covered by your insurance. Therefore, before you take any further steps, wait for the home inspection and see what the experts say. If the results are disappointing and the cracks have been caused by something preventable, you can pay the contractor to repair them. However, don’t forget to find out what payment plans they offer. Maybe you will find some options you can take advantage of. 

The bottom line is that insurance companies won’t cover anything that could have been prevented with regular maintenance. You can count on the money if the damage has been caused by something unexpected such as lightning, fires, or tornados, so that is good news. In case your home insurance policy doesn’t cover foundation cracks, don’t put off the repairs any more than you have to, because things will just get worse over time. After all, the foundation supports the most valuable thing you own: your home. 

If you have noticed cracks in your foundation and you are not sure what your next step should be, please do not hesitate to contact experts at FSM to schedule a free inspection and repair estimate. 

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