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Damage to your home’s foundation can cost thousands of dollars and threaten the integrity of your home. Fortunately, your home insurance will cover this type of damage in some cases.

Here’s what you need to know about home insurance and foundation repair:

Does home insurance cover foundation repairs?

Your home’s foundation falls under the scope of your homeowner’s insurance. This part of your policy protects your home in the event of accidental damage.

When it comes to whether your home will pay for foundation repairs, the short answer is: It depends.

A typical homeowner’s insurance policy covers a number of issues, such as hurricanes, tornadoes, hail, lighting, falling trees, vandalism, and fire. If the damage to your foundation is due to some of them, your insurance may pay for the repairs.

Basics to improve Learning limits

The amount that the insurance provider will pay for foundation repair depends on the limits of your policy. There is no fixed limit for home security. When you purchase your policy, you will choose a deductible limit, which will allow you to rebuild your home in the event of a loss.

The good news is that as long as your home is properly insured, you are unlikely to reach your limit. The average cost of repairing a foundation is $4,774, according to HomeAdvisor, with most homeowners paying between $2,149 and $7,536. Although foundation repairs can cost $10,000 or more, you shouldn’t approach your limits unless there is significant damage to other areas of your home.

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When does home insurance not cover foundation repairs?

Your homeowner’s insurance will cover foundation repairs as long as the damage is caused by a covered accident. But you may be stuck paying out of pocket sometimes.

First, homeowner’s insurance policies do not cover certain types of natural disasters. Those disasters are earthquakes and floods. If you live in an area prone to this, you will want to purchase earthquake or flood insurance.

Your policy may also exclude damages caused by wear and tear, damage, neglect, or poor construction.

Tips: In most cases, for foundation damage to be covered, it must be the result of an emergency or accidental event listed in your policy.

Learn more: Flood Insurance: What It Does and When You Need It

Will the home warranty damage the foundation?

A home warranty is an agreement between you and a home security company that pays for repairs or replacements for appliances and other equipment in your home. Home warranties usually don’t cover everything in your home, including your foundation.

The good news is that even though these products don’t cover the foundation, they provide coverage that can help prevent foundation damage. For example, warranties cover plumbing systems. And since water and moisture are some of the main causes of foundation damage, your warranty may ultimately reduce your chances of having to repair the foundation.

See: Does Home Insurance Cover Bombs?

Signs of damage to the foundation

If you own a home, it’s important to know the signs of foundation damage so you can deal with it as quickly as possible. After all, the sooner you fix it, the easier it will be to fix it. Signs of a bad foundation or potential future damage include:

  • Cracks in your basement and interior walls
  • Doors that do not close properly
  • Down below
  • Excessive moisture in your basement or crawl space
  • Improper planning and planning on the ground
  • Bad sewers
  • Tree roots are very close to your home
  • Extreme temperature changes

How to prevent foundation damage

Foundation damage is inevitable, and you can take steps to prevent it. One of the most important things you can do is monitor and maintain moisture around your home’s foundation.

To protect your home’s foundation, you don’t want the soil to be too wet or too dry. First, you need to water the soil to make sure it has moisture. Next, take steps to get the water out of your home using faucets and drains. Finally, check the humidity level around your home using a moisture meter to make sure the soil is not too wet or too dry.

Another way to prevent foundation damage is to invest in regular home inspections, once or twice a year. An inspector can catch signs of a bad foundation and help prevent damage before it becomes apparent. If your foundation has cracks, repair it as soon as possible.

Learn more: How Much Does Flood Insurance Cost?

How to file a foundation damage claim

If you have foundation damage that needs to be repaired, you will want to report it to your insurance provider and repair the damage as soon as possible. Follow these steps:

  1. Review your schedule. Make sure the damage is caused by a covered accident. If you’re not sure, check your policy or ask your insurance agent to double-check.
  2. Record the damage. Take several photos and videos of the damage to the insurance provider. Make sure the lighting is good and the images are clear. You may also want to keep a log with detailed information of all the damages you have encountered.
  3. Write a resolution. Visit your insurance company’s website to find out how to file a claim with them. Most providers allow you to submit a claim online or over the phone.
  4. Fix it for a short period of time. If it is necessary to prevent damage to the foundation, make temporary repairs until you can find a contractor to fix the problem.
  5. Wait for the insurance adjuster. Once the insurance provider receives your claim, they will send a claims adjuster to your location. The adjuster will assess and document the damages to determine how much the provider must pay.
  6. Get quotes from contractors. Contact local contractors and estimate the final cost of the renovation.
  7. Receive your loan repayment opportunity. When the adjuster submits his work, you will receive a fee from the insurance provider. Make sure you are comfortable with the amount before accepting the offer. If you have a mortgage on the property, a refund check may be issued to you and your lender to ensure that proper repairs are made.

Continue Reading: Summary of Loss of Use Method

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Disclaimer: All insurance related services are provided through Young Alfred.

About the author

Erin Gobler

Erin Gobler is a freelance financial writer with over eight years of experience writing online. He likes to make the business of finance easy to understand by explaining complex financial issues in simple terms.

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