Do Home Insurance Companies Cover Foundation Cracks?

Written By Leah LeitowPublished on 08/19/2021Updated on 09/19/2024

There are many reasons homeowners 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 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 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.

This article covers situations when foundation crack repair is and is not covered by homeowner’s insurance, and how local foundation repair experts can help you repair and protect your home.

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When Does Homeowner’s Insurance Cover 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 a foundation repair expert has inspected your home and determined 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.

When Does Home Insurance Not Cover Crack Repairs?

Since every home insurance policy is different, it’s important to find out in which cases yours won’t cover the cost of repairs. Every insurance company has a set of exclusions. 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 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 foundation professional 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.

Repair and Protect Your Foundation with FSM

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 our experts at Foundation Systems of Michigan to schedule a free inspection and repair estimate. We have more than 15 years of experience repairing and protecting homes throughout Michigan and Northwest Ohio. Homeowners know they can count on our industry-leading solutions, customized repair plans, and excellent customer care.

All our foundation repair solutions are tested and proven to permanently stabilize your home and prevent further damage like settling and cracking. Every home is different, so we provide repairs tailored to meet your specific needs. Reach out to us today to ensure your home’s safety and your peace of mind.

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FAQs

Can insurance cover the costs of repair?

Homeowner’s insurance typically does not cover foundation settlement, but it’s best to consult your policy or speak with your insurance agent for specifics.

Is basement waterproofing covered by insurance?

Typically, standard homeowner’s insurance does not cover basement waterproofing or seepage, but separate flood insurance might cover some water damage.

Is water in the basement covered by homeowners’ insurance?

Typically, homeowners’ insurance does not cover water damage in the basement due to maintenance issues. Verify your policy details with your insurance provider.

Leah Leitow

Content Writer

Leah is a Content Writer for Groundworks with more than ten years of experience working in the foundation repair industry. Her experience ranges from working with homeowners to find the right solution to training inspectors and staff. In her background as a Michigan journalist, she gained invaluable insight into people's lives throughout our state. Leah lives in metro Detroit with her husband and two sons.