Foundation issues are every homeowner’s worst nightmare. If the very base of your dream home crumbles, the whole thing can come crashing down around you. However, because of its supportive nature and difficult repair location, fixing the foundation of your home can be quite expensive. Home insurance is built to help you take care of certain damages concerning your home’s structure, but can it take on this hefty repair request? Let’s take a look.
Common causes of foundation damage
Of course, there are natural disasters that can start collapsing a foundation like a pile of bricks. There are also tons of random events that may cause damage to your home, such as vehicle damage or falling objects. The most common forms of foundation damage, though, comes from:
- Evaporation – causing soil to expand and shrink beneath your foundation
- Tree roots growing under your home – causing soil to shift and sometimes shrink
- Plumbing leaks & burst pipes – causing a buildup of pressure under your foundation
- Improper drainage – which prevents water from properly escaping and allows it to erode the soil under your foundation
- Improper construction – which can cause a house to sink if the ground isn’t properly prepared before building the house.
Yet, the most common way that a house’s foundation can be damaged is by shifting soil, erosion, and poor soil conditions that can present themselves over time. So, the question is if your home insurance will cover damages that have happened over a long period of time.
Keep Drainage and Soil Grading in Tip-Top Shape
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Grade your yard properly: Ensure the ground slopes downward from your home—aim for about a 6-inch drop over the first 10 feet—to prevent water pooling near your foundation.
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Maintain your gutters and downspouts: Clean them at least twice a year or more if you have nearby trees. Make sure downspouts extend 5–10 feet away from your home to redirect water effectively.
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Install drainage systems as needed: For persistent moisture issues, consider installing French drains, surface drains, or swales; these help channel water away long-term.
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Use sump pumps with battery backup: If you have a basement or a high water table, a sump pump (especially with battery backup) offers vital protection during heavy rains or power outages.
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Landscaping & plant placement: Keep planting areas and mulch at least 2–3 feet from the foundation to avoid moisture retention. When planting trees, maintain at least a 20–30 foot distance to avoid root-related soil shifts.
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Monitor and address early warning signs: Routinely inspect for cracks in walls, sticking doors or windows, uneven floors, or water leaks—addressing these early can prevent costly structural repairs.
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Document and act promptly: If drainage or foundation issues appear, documenting your maintenance (e.g., photos of clean gutters or newly added grading) strengthens your position—with insurers especially mindful about whether issues stem from gradual neglect or sudden causes.
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Will my home insurance help fix my foundation?
Home insurance is there to help you with sudden disasters that may come your way. More likely than not, your foundation has suffered at the hands of the shifting sands of time – quite literally. Since soil tends to simply expand, contract, and erode over time, a foundation that was damaged by this method probably won’t be covered by your home insurance. In a carrier’s eyes, the damage can be seen as a simple wear and tear issue rather than a sudden outcome (even if the damage came as a sudden surprise to you).
Will my home insurance help me repair my foundation after a natural disaster?
If your foundation was damaged as the result of a covered peril, such as a fire, a windstorm, or a falling object (like a tree), your home insurance may cover the damage to your foundation in addition to the damages to your home as a whole. However, if the foundation repair will be considered in the total amount that it takes to rebuild you home, you’ll need to make sure that you have enough coverage.
If your home is covered for its market value – or the amount that your home would sell for the day before the disaster – you may end up paying a lot more out of pocket to repair the rest of your home after your foundation is fixed. If your home is insured for its replacement cost value – the cost that it would take to rebuild your home entirely – you could have a lot more help from your insurance to rebuild a solid foundation as well as repair your home’s structure.
Earthquakes, Floods, & Sinkholes: Are natural disasters covered?
Nonetheless, most of the perils that home insurance covers reflect events that usually affect your home from the top down, not the ground up. Typical natural disasters that start near your foundation, on the ground, are typically not covered at all by home insurance. These disasters and typically excluded home insurance perils are:
- Earthquakes
- Floods
- Sinkholes
- Sewer backup
Usually, these policies must be purchased separately or as a rider to existing homeowners’ policies in order to have coverage for any part of your house. So again, be sure to check with your agent and read through your policy to check what is and isn’t covered by your home insurance.
Understanding the different home insurance policy types available
Standard Homeowners Insurance Coverages (HO Policies)
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HO-3 (Special Form): The most common policy – covers your dwelling for all perils except those specifically excluded (open perils), but covers personal property only for named perils
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HO-5 (Comprehensive Form): Similar to HO-3 but provides all-risks coverage for both dwelling and personal property, including higher limits for valuables like jewelry and electronics
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HO-2 (Broad Form): Covers specified perils only – covers both dwelling and personal property but only for a limited list of named events (e.g., fire, falling objects, water damage due to freezing)
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HO-1 & HO-8: Rare today – HO-1 is very basic (10 named perils only). HO-8 is designed for older homes, with payouts based on actual cash value rather than replacement cost
Policy Components (Coverage A–F Explained)
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Coverage A (Dwelling): Covers your home’s structure – including the foundation- if damaged by a covered peril
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Coverage B (Other Structures): Covers detached structures like sheds or fences (generally around 10% of Coverage A)
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Coverage C (Personal Property): Covers your belongings; typically 50- 70% of Coverage A, with possible sub-limits for jewelry or electronics
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Coverage D (Loss of Use): Pays for temporary housing and living expenses if your home is unlivable due to a covered loss (usually ~20% of Coverage A)
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Coverage E (Liability): Protects against legal and medical costs if someone is injured on your property
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Coverage F (Medical Payments to Others): Covers minor medical expenses for non-household members injured on your property, regardless of fault
Endorsements and Additional Coverage Options
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Sinkhole Coverage: Adds protection for sudden ground collapses—- are typically excluded from standard policies- paying for foundation stabilization and structural repairs
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Earthquake Coverage: Normally excluded but can be added via endorsement or purchased separately
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Other Endorsements: Common add-ons include sewer backup, water backup, dwelling-under-construction, and home-business coverage, depending on your property needs
HOA / Condo-Specific Coverage
If you live in a condo or under an HOA:
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The HOA or condo association often covers shared exterior elements or building structures- meaning foundation damage may or may not be shared coverage.
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Your individual policy (e.g., HO-6 for condos) must cover your unit’s interior, liability, and a portion of foundation-related issues unless clearly outlined otherwise.
Frequently Asked Questions
1. Does homeowners insurance cover foundation settlement?
Foundation settlement is considered a form of gradual wear and tear or natural movement due to soil changes. As such, it’s typically not covered by homeowners insurance. Coverage usually applies only when foundation damage stems from a sudden and accidental event, such as a vehicle impact or collapse under heavy snow.
2. Are foundation issues caused by leaking pipes covered?
Yes. If the foundation is damaged due to sudden and accidental water damage, like a burst pipe, many policies will cover the resulting repairs. Make sure it’s documented and the damage is directly linked to that incident.
3. What’s the difference between dwelling coverage and foundation coverage?
- Dwelling coverage is the portion of a homeowners policy designed to repair or rebuild the home’s main structure – this includes the foundation if the damage results from a covered peril.
- Foundation coverage, per se, usually isn’t a standalone component unless added via an endorsement; rather, your foundation falls under your dwelling coverage when the damage is due to a covered peril.
4. How can homeowners protect their foundation proactively?
- Prevention and documentation are key. Effective strategies include:
- Installing gutters and perimeter drainage systems to divert water away from the foundation
- Maintaining consistent soil moisture levels using timed watering during dry seasons
- Conducting bi-annual professional inspections to catch early issues like cracks or misalignment
- Taking photos and videos to document your foundation’s condition, especially before and after any incident, can be invaluable for insurance claims
5. Are floods and earthquakes covered under standard homeowners policies?
No. Standard homeowners insurance policies exclude coverage for foundation damage caused by floods, earthquakes, and other earth movements like sinkholes or landslides. You’d need separate policies – such as flood insurance (often via NFIP) or earthquake insurance for those risks.
How can I prevent foundation damage?
Most times, foundation damage can take a homeowner by surprise. However, there are a few ways that you can prevent damage and its costly repair bill:
- During dry seasons, water the ground around your foundation to check for gaps between the soil and your foundation
- Keep your gutter’s exit points clear and away from your house to prevent water from seeping underground
- When planting trees, make sure they are placed far from the perimeter of your house
- If trees are planted close to your home, consider placing root guards or defensive shields blocking their roots systems from growing under your home.
- If you have a newer home, check your construction company’s warranty. Most builders’ warranties cover their construction for about 10 years.
While your foundation is a vital part of the home you aim to protect, it’s not the only portion that needs protection. That’s why our agents work with you to find the right coverage for, not only the building blocks of your home, but everything that goes into keeping up everything under your roof. Plus, with the training and the multiple carrier relationships our agents have developed, we’ll help you get the best price on the coverage you need. To get started with your free, customized home insurance quotes, just give us a call, fill out our online form, or LiveChat with a professional today!
Source 1: Edens Structural Solutions | Source 2: Concrete Network