Homeowners insurance covers foundation repairs if the damage is caused by a sudden, covered peril, such as a burst pipe, severe storm, or fire. Damages from gradual issues like wear and tear, normal settling, flooding, earthquakes, poor construction, or lack of maintenance are typically not covered by a standard policy. You may need to purchase separate flood insurance, earthquake insurance, or specific endorsements for certain events, like sewer backups, to have those types of damages covered. To know for sure, you must review your specific policy document and contact your insurance provider to understand the covered causes and excluded perils.

Foundation Repair Dilemma: Is Insurance Your Safety Net?

My brother loved his historic home, a fixer-upper with character, but after a brutal summer drought followed by heavy rainfalls, he started noticing new, wider cracks in his basement walls. The cracks were deep, jagged fissures that spread across several blocks, accompanied by a damp, musty odor, suggesting water issues. He remembered his insurance policy covered water damage but wasn’t sure about the foundation repairs. His insurance agent explained that claims are dependent on the cause of damage. The adjuster approved his claims for the necessary foundation work, but many homeowners are denied the claims due to negligence and lack of maintenance. Homeowners should maintain their soil and grading and address any warning signs of foundation damage promptly.

Did you know? Recent reports show that foundation repair costs are rising, averaging over $5000 for 2025, with significant price variations based on the severity of the damage, the materials and the techniques used, the location, and the need for additional reports or services.

Is your foundation repair covered? Read below to understand the nuances of foundation repair coverage.

• When Should You Rely on Home Insurance for Foundation Repairs?

• Sudden, unexpected, and accidental events are covered. Damage from covered perils listed in your policy, such as fire, explosion, or a vehicle or aircraft impact, is typically covered by your insurance policy.

• Certain weather events, like damage from storms, strong winds, or ice dams, are covered by homeowners’ insurance. Invasive tree roots, erosion, and extreme temperature changes can exacerbate the damage over time.

• If you have the right endorsement, damage from a plumbing backup or a sump pump failure may be covered.

Important fact Many reports confirm that the majority of insurance claims are denied, as most foundation damage results from issues, such as gradual shifts or construction issues, specifically excluded by homeowners’ policies, rather than a sudden accident.

• Top Reasons Why Home Insurance Might Not Cover Foundation Repairs

• Gradual deterioration and aging of the foundations are considered a homeowner’s responsibility and are not covered by standard homeowners’ insurance coverage.

• You need additional coverage for floods and earthquakes. A separate flood insurance policy is required to cover foundation damage from rising waters. 

• Separate earthquake insurance is typically required to cover damage from earth movement.

• Issues arising from poor water drainage due to homeowners’ actions and negligence are not covered.

• Extreme temperatures can cause pipes to burst, which might be covered if sudden and unforeseen but potentially excluded if linked to inadequate maintenance.

• Pressure from tree roots or damage from rodents or termites is generally not a covered peril.

• Soil settling-related foundation damage is often excluded from homeowners’ standard insurance policies because it is considered a gradual wear and tear issue or a result of poor maintenance, faulty construction, or natural circumstances like drought.

• The ‘proximate cause’ of the damage is crucial. You may need an inspection or report from a foundation specialist to help determine the cause and whether it’s a covered event.

• Discuss endorsements and add-on coverage, such as floods or sewer backup coverage, with your broker to see if they are a worthy addition to your homeowners policy.

3. Conclusion

Homeowners’ insurance covers foundation repairs only if the damage is caused by a sudden, accidental, and covered peril, such as fire, storm, vandalism, or a fallen tree. It generally does not cover issues arising due to lack of maintenance, normal wear and tear, settling, soil erosion, faulty construction, or natural disasters like floods and earthquakes. Carefully review your homeowners’ insurance policy documents to understand the specific details of your dwelling coverage and its exclusions.

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4. FAQs

How can I prevent costly foundation repairs?

Addressing early warning signs like hairline cracks and water leaks promptly can prevent them from escalating into extensive and costly repairs.

Do foundation repairs last a long time?

Foundation repairs can last well beyond 150 years or the lifespan of your home.

What are the latest insights on foundation repairs?

A significant increase in the overall costs and claims is driven by climate change, inflation, and excessive litigation. In some areas, such as Massachusetts, affected homeowners have faced challenges in getting legislative relief or insurance coverage.