Does Homeowners Insurance Cover Foundation Repair?
Jump To: Coverage Overview | Excluded Issues | Covered Scenarios | Insurance Types | Filing a Claim | Insurer Views | Sources
Research Highlights: Homeowners insurance typically does cover foundation repairs only when the damage is caused by a sudden, covered peril – for example, a burst pipe, fire, or severe storm. Gradual foundation issues from wear and tear or shifting soil are usually excluded from coverage. In a climate like Houston’s (with expansive clay soils and heavy rains), most standard policies do not cover cracking or settling of slab foundations due to soil movement. However, additional coverages (like a Texas foundation water damage endorsement) or separate policies (flood or earthquake insurance) can help protect against foundation damage from those specific causes.
Research Summary: Generally, homeowners insurance will pay to repair a home’s foundation if and only if the damage results from a peril that the policy covers (such as a tree falling on the house, a lightning-sparked fire, or a sudden plumbing rupture under the slab). Routine cracking, settling, or damage from preventable causes (like long-term moisture leaks or poor construction) won’t be covered. In Houston and across Texas, where foundation problems are common, homeowners should not expect their standard insurance to cover typical slab repairs unless an “act of God” or accident triggered the issue. Instead, specific endorsements or insurance types (for floods, earthquakes, or slab leaks) may be needed for those scenarios.
Fast Facts
Standard Coverage - A home’s foundation is insured under the dwelling coverage of a homeowner’s policy, but only for covered perils. If a covered event (fire, windstorm, etc.) cracks or shifts the foundation, repairs are typically included up to the policy limit.
Common Exclusions - Gradual damage – such as foundation settling, earth movement, tree root growth, or long-term soil expansion/contraction – is normally excluded as maintenance or wear-and-tear. Damage from floods or earthquakes isn’t covered by standard policies.
Texas Caveat - In Texas (including Houston), insurers specifically exclude slab foundation repairs due to soil movement. Insurers consider clay soil-related cracking as a known risk not covered by default. Optional “Foundation coverage” endorsements (often ~15% of dwelling limit) can be added to cover damage from plumbing leaks under the slab.
Sudden vs. Gradual - The cause of the foundation damage is critical. Sudden, accidental events (e.g. a car crashing into the house or a burst water pipe) fall under coverage. Gradual deterioration or preventable issues (poor drainage, settling over years) are the homeowner’s responsibility.
Other Policies -
Flood insurance (through NFIP) covers a home’s foundation if floodwaters cause structural damage. Earthquake insurance can cover foundation cracks from quakes. Home warranty plans do not cover structural foundation repairs – those plans focus on appliances and systems, not the home’s structure.
Research Takeaways
Homeowners insurance can cover foundation repair, but only in limited situations. Virtually all policies exclude routine foundation problems that arise from the ground shifting or aging of the home. Insurance is intended for sudden disasters, not gradual damage. Houston homeowners, in particular, face a harsh climate for foundations – alternating drought and heavy rain cause soil movement that insurers classify as preventable or inevitable, and thus not covered under standard coverage. Understanding what perils are covered, and purchasing additional coverage for floods, earthquakes, or slab leaks if needed, is crucial to avoid surprises. Below, we delve into the specifics of coverage, exclusions, and how to navigate claims for foundation repairs.
Does Homeowners Insurance Cover Foundation Repair?
Fast Facts
“It Depends” - Whether insurance pays for foundation repairs depends on the cause of damage. Insurance will cover a foundation if it was damaged by a covered peril (an event listed in your policy). If the foundation issue comes “from below” (soil issues, settling), coverage is unlikely.
Covered Perils (Examples) - Most policies cover foundation damage from fire, explosion, wind or hail storms, vandalism, vehicle impact, or burst plumbing. These are abrupt incidents beyond the homeowner’s control.
Typical Outcome - In practice, most foundation repairs are not covered by insurance because they often result from gradual shifts or construction issues rather than a sudden accident. Insurers view Texas foundations, for instance, as inherently prone to fail over time due to soil – a risk they explicitly exclude.
Policy Language - Your policy’s dwelling coverage does include the foundation structure, but also lists exclusions. Homeowners in coastal Texas might find exclusions for wind-driven soil erosion, while others see general exclusions for “settling, shrinking, bulging or expansion” of foundations unless caused by a covered event.
Claim Denials - If you file a foundation claim and the adjuster concludes the damage was from a non-covered cause (like poor compaction of soil or long-term seepage), the claim will be denied. Only foundation damage tied to a specific covered incident will be approved for payout.
Research Takeaways
Homeowners insurance does cover foundation repairs when the damage stems from a peril named in the policy – essentially, a sudden, accidental cause. For example, if a lightning strike causes a house fire that cracks the concrete slab, or if a windstorm topples a tree onto the home’s foundation, the dwelling coverage kicks in to pay for foundation repairs. Similarly, an abrupt plumbing failure (like a burst pipe under the slab) is typically covered, including the cost to access and fix the foundation as part of repairs.
However, insurers draw a hard line between accident damage and maintenance issues. Over time, almost all houses experience some foundation settling or cracking – insurance companies consider this normal “wear and tear,” not an insurable loss. Especially in regions like Houston, where clay soil expansion can slowly push a foundation out of level, insurers will not cover those gradual damages. In fact, many Texas policies explicitly exclude coverage for slab foundation movement because it’s so common and expected. The consensus among major insurers is that homeowners insurance is for sudden disasters, not inevitable aging or soil issues in the foundation.
Covered vs. Not Covered Foundation Scenarios
| Scenario | Likely Covered by Home Insurance? | Explanation |
|---|---|---|
| House fire causes foundation cracks | Yes – Covered peril | Fire is a covered peril; dwelling coverage pays for structural repairs. |
| Tree falls and damages foundation | Yes – Covered peril | Falling objects (like a tree or vehicle) are covered sudden accidents. |
| Burst pipe under slab floods foundation | Yes – Covered (sudden water damage) | Sudden accidental water discharge is covered; policy pays to tear out & repair foundation. |
| Gradual soil settling cracks slab | No – Excluded (maintenance) | Considered normal wear/tear or earth movement; not sudden, thus not covered. |
| Poor construction leads to foundation issues | No – Excluded (faulty workmanship) | Construction defects are typically excluded; homeowner’s insurance isn’t a warranty. |
| Earthquake cracks the foundation | No (without separate policy) | Earthquake damage requires separate earthquake insurance – not covered by standard HO policy. |
| Flood undermines foundation | No (without flood insurance) | Flooding is excluded from homeowners insurance; NFIP flood policy needed for coverage. |
What Foundation Issues Are Typically Excluded from Coverage?
Fast Facts
Wear and Tear: Nearly all policies exclude damage from “wear and tear” or maintenance issues, and this includes gradual foundation deterioration. Cracks or settling that develop over years due to aging materials or normal soil settling are not covered.
Settling & Soil Movement: If your foundation moves because the ground underneath shifts (due to expansive clay soils, drought shrinking the soil, landslide on a hill, etc.), that is considered earth movement and is excluded under standard homeowners insurance. This is a key exclusion in Texas, where shifting clay soil is a well-known cause of foundation cracks.
Construction or Design Flaws: Any foundation problem traced to faulty construction, design, or poor workmanship is typically not covered. For example, if the rebar spacing or pier depth was inadequate leading to a crack, insurance won’t pay – those are the builder’s or homeowner’s problem (unless a separate builder’s warranty applies).
Long-term Leaks & Seepage: Slow plumbing leaks or water seepage that causes foundation damage over time are not covered either. If a pipe has been dripping under the slab for months and eroding soil, the resulting foundation settlement will be denied as preventable maintenance (distinguished from a sudden pipe burst, which would be covered.
Pest or Tree Damage: Damage from termites, rodents, or invasive tree roots undermining the foundation is excluded. Insurers consider infestations and vegetation issues as maintenance items – homeowners are expected to protect their foundation from these threats (e.g. termite treatments, removing damaging roots).
Research Takeaways
Insurers list several specific exclusions related to foundation damage in a standard policy. The common thread is that insurance won’t pay for anything that happens gradually or predictably. For instance, natural settling of a house is expected as it ages; if that settling causes your slab to crack or your doors to misalign, it’s deemed a home maintenance issue, not a sudden loss. Likewise, foundation damage from neglect (say you ignored poor drainage or a small crack that grew worse) is on the homeowner.
Several notable exclusions affect foundations:
Earth Movement - This broad category includes settling, shrinking, expansion, landslides, mudflows, and sometimes subsidence. Any foundation crack caused by the ground moving (apart from an earthquake, which is separately excluded too) is not covered. This means if Houston’s clay soil dries and contracts in a heatwave, causing part of the slab to sink, your policy won’t cover lifting or piers to re-level the home.
Water Below the Surface - If water seeps under your foundation slowly (from a rising water table, slow leak, or poor drainage) and causes cracks or heaving, that seepage is excluded. Homeowners insurance only covers “sudden and accidental” water damage, not constant moisture or humidity issues under the slab.
Inadequate Construction - Insurance is not a guarantee of your contractor’s work. So if your foundation cracks because the builder didn’t reinforce it properly or the soil wasn’t prepared right, insurers won’t pay. As Nationwide’s guidance notes, if it’s not caused by a sudden accidental event you couldn’t plan for, it’s probably not covered – and faulty construction is no exception.
Settling vs. Sudden Cracking - Policies often have an exclusion clause for “settling, cracking, bulging or expansion” of foundations, walls, or floors – meaning just cracking on its own (absent a covered event) is excluded. Only if a covered event causes the crack can you claim. So if your foundation slab simply settles unevenly over years, resulting in a crack, that clause kicks in to deny coverage.
For Texas homeowners, these exclusions are particularly important. Insurance agents in Texas routinely warn that foundation repairs are out-of-pocket unless a covered peril is involved. The Texas Department of Insurance advises that standard policies won’t cover foundation damage from shifting soils or drainage problems, which are common causes here. Essentially, insurers expect homeowners to maintain stable soil moisture around the foundation (via soaker hoses, drainage, etc.) as part of upkeep – if the slab cracks due to drought or rain cycles, it’s on the owner, not the insurer.
Typical Foundation Damage Exclusions
| Excluded Cause | Description | Policy Rationale |
|---|---|---|
| Gradual Settling | Foundation sinks or settles over years due to soil compaction or drying. | Considered normal wear and tear, not sudden. Home maintenance issue (expected over time). |
| Ground Shifting/Expansion | Soil expands (wet) or contracts (dry), causing cracks or movement. Common with clay soils (e.g., Houston area). | Treated as earth movement – excluded unless a covered peril triggered it. No coverage for seasonal soil behavior. |
| Construction Defects | Improper design, poor concrete mix, missing rebar, or builder error leading to foundation problems. | Excluded as faulty workmanship. Insurance covers sudden accidents, not bad construction. |
| Long-Term Water Leaks | Slow plumbing leak under slab or poor drainage saturating soil over months/years, causing foundation heave or erosion. | Excluded as seepage/maintenance. Only sudden water releases are covered, not ongoing leaks homeowner failed to fix. |
| Pests (Termites/Rodents) | Termites eating wood supports or rodents burrowing under slab, leading to structural damage. | Insect/rodent damage is excluded. Preventable via pest control – not sudden or unforeseeable. |
| Tree Root Damage | Large tree roots growing and uplifting foundation or drying out soil beneath it. | Not explicitly listed in all policies, but generally falls under maintenance/natural hazard. Insurer will deny claiming it’s gradual and preventable (by removing or root-barriering trees). |
| Mold or Rot | Foundation wood components (in pier-and-beam homes) rotting, or mold weakening structure due to moisture. | Mold/rot is usually excluded or severely limited because it arises from prolonged moisture (maintenance issue). Possibly covered only if from a sudden insured water event (and even then, often capped). |
What Situations May Be Covered (Sudden Events)?
Fast Facts
Covered Perils Defined - Homeowners insurance policies list “named perils” (if HO-2) or cover “all perils except exclusions” (if HO-3). In either case, common covered perils that could damage a foundation include fire, explosion, windstorm/hail, lightning, vandalism, vehicle impact, and sudden water discharge (burst pipes). If your foundation damage clearly ties to one of these events, it’s likely covered.
Examples of Covered Scenarios - A tornado or hurricane winds causing structural shifting; a tree uprooted in a storm cracks your slab; a car (or even a large truck) crashes through your wall into the foundation; a gas leak explosion in the home blows out part of the slab – these are all sudden, accidental causes. Insurers categorize these as “covered perils”, so foundation repairs in these cases should be paid by the policy.
Plumbing Disasters - One of the most common covered causes of foundation damage is a burst pipe or sudden plumbing failure under the slab. Texas homes often have plumbing in or beneath the foundation; if a pipe suddenly ruptures and washes out soil or floods the slab, the resulting foundation repairs (and plumbing fix) are covered under the “sudden and accidental water damage” clause. The key is that the leak must be sudden – if it leaked slowly over time, it’s not covered.
Fire and Collapse - If a house fire occurs, the intense heat or falling debris might crack the foundation or weaken its integrity. Fire is a covered peril, so afterward the insurer will pay to repair not just burned walls but also any foundation damage from the fire. Similarly, if part of the home collapses from a covered peril (e.g. collapse due to the weight of snow might not be covered in some policies, but collapse from fire or wind is), foundation repairs would be included.
Outside Forces - Explosions (e.g. a propane tank blast) or civil unrest (e.g. vandalism that harms structural elements) are rare but covered. If an explosion rattles the foundation or vandals deliberately damage it, those fall under covered categories (explosion and vandalism respectively).
Research Takeaways
The situations in which home insurance will cover a foundation repair all involve sudden, accidental events beyond the homeowner’s control.
Essentially, if you can point to a specific date and incident when the foundation was damaged, and that incident is covered by your policy, you have a strong case for coverage. For example, Texas homeowners deal with severe weather – if a hurricane’s winds or a tornado physically damages the slab or shifts your home off its foundation, that’s covered as windstorm damage (assuming wind is covered; along the coast, a separate windstorm policy might be needed, but in most cases wind is included).
One frequently cited covered scenario is sudden water damage. Almost all homeowners policies include coverage for sudden discharge of water from plumbing. So, if a water heater in the attic bursts or a water supply line under the slab breaks overnight, the rushing water can crack or undermine the foundation. The policy should pay for tearing out the slab to fix the pipe and restoring the foundation. However, remember the fine line: if that pipe was just leaking slowly for years and the damage was gradual, it’s not covered. It has to be a one-time accidental break.
Other covered situations include direct impact or weight load events. If a garbage truck loses control and rams into your brick exterior, damaging the foundation, that’s clearly covered (vehicle impact is named in all standard policies). If lightning strikes a structure and causes part of the foundation to crack, that’s covered under lightning. Even a scenario like heavy wind causing a portion of the house to uplift and slam back down, cracking the slab, could be covered under wind damage – though an adjuster would have to confirm the wind actually caused that movement.
It’s important to note that while these perils are covered, you’ll still need to meet policy conditions. For instance, if a tree’s been rotting and falls on your house in a mild breeze, an insurer might argue neglect. But if a healthy tree is blown over in a recorded storm, that’s clearly accidental. Documentation (weather reports, witness accounts) helps in such claims.
Covered “Sudden Event” Examples and Coverage
| Sudden Event | Description of Damage | Coverage Outcome |
|---|---|---|
| Major storm (wind/tornado) | Wind causes structural shift; tree falls on home, cracking foundation. | Likely Covered – Windstorm is a covered peril. Repairs to walls and foundation paid by policy. |
| Burst water pipe under slab | Pipe bursts, soil eroded, part of slab sags or cracks from wash-out. | Likely Covered – Sudden water release is covered. Policy covers plumbing repair and foundation fix (minus deductible). |
| House fire or explosion | Fire’s heat causes concrete to spall; explosion in garage cracks slab. | Likely Covered – Fire/explosion are covered. Foundation damage from these events is included in claim. |
| Vehicle impact | Car crashes through exterior wall into foundation corner. | Likely Covered – Vehicles hitting the dwelling is a named peril. Insurer pays for structural repairs. |
| Sudden ground collapse (sinkhole) | Sinkhole opens under foundation without warning. | Varies – Not covered by standard HO (in some states sinkhole insurance is separate). In Texas, sinkholes are rare; would likely be excluded as earth movement. |
| Vandalism or intentional damage | Malicious damage: e.g. someone jackhammers your exterior slab edge. | Likely Covered – Vandalism is covered. Insurer pays for foundation repair (after police report, etc.). |
| Sudden subsidence from mining (rare) | Abrupt cave-in of ground from nearby construction or mining causes foundation drop. | Possibly Covered – If classified as a sudden collapse (some policies have collapse coverage). If considered earth movement, could be excluded. Case-dependent. |
What Types of Insurance May Help With Foundation Damage?
Fast Facts
Foundation Endorsements (Texas) - In regions like Texas, you can add a “Foundation and water damage” endorsement to your homeowners policy. This typically covers foundation repairs needed due to plumbing leaks or water damage under or within the slab. It does not cover natural settling or shifting soil, but it will pay to fix the foundation if it had to be broken through to repair a burst pipe, for example. Insurers usually offer coverage up to about 15% of your dwelling limit for this endorsement (e.g. $50–60k on a $400k home).
Flood Insurance - Standard home insurance won’t cover flood-related foundation damage, so a National Flood Insurance Program (NFIP) policy or private flood insurance is necessary. Flood insurance’s building coverage does include the foundation. If a river flood or heavy rain flood undermines your home’s foundation, an NFIP policy would pay for foundation stabilization or rebuilding, up to coverage limits. In the Houston area (high flood risk), this is crucial protection.
Earthquake Insurance - Earthquakes can crack slab foundations or shift pier-and-beam homes off their pier blocks. Regular homeowners insurance excludes earthquake damage, so you’d need a separate earthquake insurance policy (or endorsement) to cover that. In Texas, quakes are less common but do occur (e.g. North Texas has seen quakes related to drilling). States like California require insurers to offer quake coverage (often through a separate entity like CEA). If purchased, earthquake insurance would cover foundation repairs due to quake shaking (minus a typically large deductible).
Sinkhole Coverage - In some areas (Florida, parts of Texas with limestone), sinkhole endorsements or separate policies exist. Standard policies treat sinkholes as earth movement (excluded), but a specific sinkhole policy would cover catastrophic ground collapse that swallows a foundation. Texas doesn’t mandate sinkhole coverage, but if you’re in an area with that risk, you might seek a rider.
Home Warranty vs. Insurance - A home warranty is not insurance, but some homeowners consider it for maintenance. Be aware that home warranties generally do not cover foundation structure – they cover appliances and sometimes plumbing/HVAC. They won’t pay to fix a settling foundation. Only insurance or specialized structural warranties (often offered by builders for new homes) would address foundation issues, and even then only for certain causes.
Research Takeaways
If your standard homeowners policy doesn’t cover a particular foundation risk, there may be other insurance options or add-ons that do. The three big perils that require separate coverage are water (flood/seepage), earth movement (earthquake or sinkhole), and sometimes foundation-specific water damage in places like Texas. Homeowners in Houston often opt for a foundation coverage endorsement (sometimes called “TX Foundation Coverage” or similar) which extends the policy to cover damage from plumbing leaks under the slab and the resulting foundation repairs. This endorsement is relatively affordable and can save tens of thousands in a slab leak scenario. It’s important to note it doesn’t cover everything – it typically applies to damage from leaks or moisture, not general settling.
For flooding, only flood insurance will cover the foundation. Houston’s experience with hurricanes (like Harvey) showed that even non-coastal homes can flood and suffer foundation damage. NFIP flood insurance covers the “insured building and its foundation” as part of building property coverage. This means if floodwaters cause your home’s slab to crack or your piers to shift, NFIP can pay for repairs. However, flood policies have their own limits (commonly $250k for structure under NFIP) and deductibles.
Earthquake insurance is less common in Texas, but some homeowners get it, especially in north Texas or west Texas regions that have occasional tremors. Earthquake policies cover your dwelling (including foundation) for quake damage, usually with a percentage deductible (often 5–15% of the dwelling value). So a quake policy would help rebuild a cracked slab or reset a home that’s been shaken off its foundation piers. Houston isn’t known for earthquakes, so this is less of a concern there, but if you own property elsewhere or just want peace of mind, it’s available.
Another angle: “Slab coverage” endorsements and sewer backup coverage. Texas insurers often bundle foundation coverage with extended water damage coverage. For instance, an endorsement might cover foundation damage from sewer line breaks or backup (which standard policies exclude without a rider). If a sewer line under the home bursts and affects the foundation, the rider would pay to fix both the line and the slab (often these are called Water Backup and Foundation coverage endorsements). These are worth discussing with your agent if you have an older home in Houston where under-slab plumbing is a known risk.
Lastly, remember maintenance is key. No insurance will cover a poorly maintained foundation. But insurers might offer discounts or at least peace of mind if you take steps like installing sump pumps (covered by backup insurance) or using foundation watering systems (to prevent movement). While not an “insurance” per se, investing in prevention can be seen as another way to “insure” your foundation by avoiding damage in the first place.
Additional Coverages for Foundation Risks
| Additional Coverage | Purpose | Relevance to Foundation Damage |
|---|---|---|
| Foundation Water Damage Endorsement (TX) | Add-on to homeowners policy (in Texas and some states) covering foundation repairs due to plumbing leaks or water under foundation. | Covers settling/cracking from sudden pipe leaks under slab, including cost to access leak. Typically 15% of Coverage A limit max payout. No coverage for soil movement unrelated to leak. |
| Water/Sewer Backup Endorsement | Covers damage from sewer or drain backup (water coming up through drains or sewers). | Indirectly helpful: if sewer backup pressure cracks slab or water under foundation, pays for damage. But mainly for interior water damage. Often required for coverage of any sewer line issues. |
| Flood Insurance (NFIP) | Separate policy covering flooding (rising water from outside). | Covers foundation if damaged by flood waters. Essential in flood zones. No standard policy coverage for this otherwise. |
| Earthquake Insurance | Separate policy or endorsement covering shaking/earth movement from quakes. | Covers foundation cracks or displacement from earthquakes. Needed in quake-prone areas (standard policy won’t cover quake damage). Often carries high deductibles. |
| Sinkhole Insurance | Special coverage in areas prone to sinkholes or ground collapse. | Covers sudden ground collapse that could destroy a foundation (treated like earthquake coverage for the ground giving way). Not standard; available in certain states/areas (Florida, parts of TX). |
| New Home Structural Warranty | Warranty (often 10-year) from builder or third-party on new construction for structural issues. | Not insurance, but if your home is new, such a warranty might pay for foundation defects or failures due to construction issues (within warranty term). Useful complement since home insurance won’t cover construction defects. |
| Home Warranty Plan | Service contract for appliances/systems. (Mentioned for context.) | Does not cover foundation. (Some plans might cover minor settling if it causes plumbing issues, but generally structural elements are excluded.) Homeowners should not rely on a home warranty for any foundation remediation. |
How to File a Claim for Foundation Repair
Fast Facts
Confirm Cause First - Before filing a claim, identify the likely cause of the foundation damage. You should have reason to believe it was caused by a covered peril. For example, if a recent pipe burst or storm is the culprit, proceed with a claim. If it appears to be long-term settling or a known exclusion, a claim may be futile and could count against your record.
Document Damage - Take photos and videos of all cracks, shifts, or related damage. Also document the precipitating event if possible (e.g., pictures of the fallen tree, plumber’s report of the burst pipe). This evidence will be critical for the insurer’s assessment.
Mitigate Further Damage - Don’t wait for the insurer before taking temporary measures to prevent more harm. For instance, if water is gushing from under the slab, shut off water and pump out standing water; if part of the foundation is exposed and could collapse, shore it up if safe. Insurance policies require policyholders to mitigate damages, and they typically reimburse the cost of reasonable temporary repairs. Save all receipts if you pay for emergency services.
Contact Insurer Promptly - Report the claim to your insurance company or agent as soon as you can, especially for water-related damage (mold can set in quickly). Many insurers have 24/7 claim lines. Initiating the claim promptly gets an adjuster out faster and shows you’re fulfilling your duties under the policy.
Expect an Adjuster & Evaluation - The insurance company will send a claims adjuster to inspect your foundation and overall damage. They may also ask you to obtain a report from a structural engineer or foundation expert. Cooperate fully and provide any evidence of the cause. The adjuster will determine if the claim is covered and estimate repair costs.
Research Takeaways
Filing a foundation repair claim follows the standard homeowners insurance claims process, with a few extra considerations given the structural nature of the damage. The first step is always to ensure safety and prevent further damage – for example, if a section of your slab has collapsed or a major crack is worsening, you may need to temporarily support that area. Also, if water is involved, remove it quickly to avoid secondary issues like mold (which might not be covered if it results from a delay).
Once you’ve stabilized the situation, notify your insurer. Most policies require prompt notice of claims. When you call, clearly explain what happened and that you suspect foundation damage. For instance: “During the storm last night, a tree hit our house and now there’s a crack in the foundation wall.” This frames it as a covered event from the start. The insurer will open a claim and assign an adjuster.
Documentation is your friend. Keep a log of everything – when cracks were first noticed, any noises heard, weather conditions, etc. Take wide-angle photos of the house and close-ups of damage. If a plumbing incident happened, get a plumber’s statement. This evidence can help resolve any doubt about causation.
When the adjuster arrives, they will inspect the damage. It can be helpful to have your own contractor or engineer’s evaluation as well, especially for complex foundation issues. For example, if you already had a foundation repair company examine it (many offer free inspections) and they concluded “the crack likely occurred due to the uprooted tree impact,” you can share that with the adjuster. They’ll make their own assessment but additional expert opinions can support your claim.
Be prepared that the insurer might also check for pre-existing damage. If you had known foundation cracks from before, and now are trying to claim them under a new event, that could be problematic. Honesty is important; don’t try to lump unrelated old damage into a new claim.
After the adjuster’s visit, they will write up a report. If approved, the insurance company will provide a scope of work and an estimate for repairs. You’ll then typically need to hire a foundation repair contractor to do the work. It’s wise to choose a reputable, licensed foundation contractor who has experience working with insurance claims. They may have to coordinate with the adjuster on agreeing to costs and methods (e.g., how many piers, type of repair, etc.).
During the claim process, keep receipts and records of any expenses. If you had to pay for immediate fixes or even hotel bills (if your home was unsafe), those could be reimbursable under additional living expenses coverage, if the damage made the home uninhabitable. Discuss this with your adjuster.
Finally, remember the impact on your policy: filing a claim, especially a large structural claim, can affect your future premiums or insurability. It’s often worth it if the damage is extensive (since foundation repairs can easily run tens of thousands of dollars). But if the damage is minor and barely above your deductible, you might consider paying out-of-pocket to avoid a claim record. Each situation differs; use judgment and perhaps consult your insurance agent if unsure.
Steps to File a Foundation Repair Claim
| Step | Action and Tips | Details |
|---|---|---|
| 1. Assess & Mitigate | Ensure safety, stop ongoing damage. e.g., shut off water if pipe burst; cover cracks to prevent rain ingress. | Homeowner’s duty to prevent further damage. Temporary fixes (boarding up, plumbing stopgap) are reimbursable. |
| 2. Document Damage | Photograph cracks, shifted walls, any evidence of cause (fallen tree, etc.). Write notes on timeline. | The more evidence, the easier to prove the claim. Include wide shots and close-ups. Document related damage (doors sticking, floor sloping, etc.). |
| 3. Notify Insurance | Call your agent or insurer’s claims number to report the loss. Provide date, cause, and visible damage description. | Initiate claim ASAP. Get a claim number. Ask about emergency repairs – many policies allow hiring a pro immediately for emergency work, which will be covered. |
| 4. Secure Professional Inspections | (Optional) Have a foundation repair company or structural engineer inspect and provide a report. | An independent expert report can support your claim and help in discussions with the adjuster. Not always necessary, but helpful in complex cases. |
| 5. Meet the Adjuster | Walk through the damage with the insurance adjuster. Show them all affected areas and provide any evidence or reports. | Be thorough – point out even subtle signs of damage. The adjuster will evaluate if it’s covered and estimate cost. They may take their own pictures/measurements. |
| 6. Claim Decision & Estimate | Receive the insurer’s decision. If approved, they provide an estimate of covered repairs (after deductible). | Review the estimate. If you disagree (e.g., something was overlooked), you can contest or supplement with additional proof. |
| 7. Hire Contractor & Repair | Select a qualified foundation repair contractor. Coordinate repair plan with insurer (they may need to approve scope). | Insurer may pay contractor directly or reimburse you. Often initial payment is made, and if additional issues are found during repair, adjuster might approve a supplement. |
| 8. Claim Closure | Once repairs are done, submit final invoices to insurer. Ensure you receive due payments (minus deductible). | Keep all documents. If the repair cost exceeds initial estimate, your contractor and adjuster should communicate on a supplement. After settlement, policy may adjust at renewal (premium could rise). |
What Do Top Insurers Say About Foundation Repair Claims?
Fast Facts
Allstate
Emphasizes that gradual foundation issues aren’t covered. Allstate’s educational materials note that homeowners insurance won’t cover damage from wear and tear or earth movement – for example, they mention foundations shifting over time leading to cracks would be maintenance, not a claim. However, Allstate acknowledges coverage for foundation damage caused by certain sudden incidents, like plumbing leaks if the policy has the right water damage coverage. They encourage policyholders to maintain their foundation (regular inspections, proper drainage) to prevent non-covered damage.
State Farm
State Farm’s guidance highlights that home insurance is for unforeseen damage, not routine repairs. They cite scenarios like fire, hail, wind as covered, but explicitly say lack of maintenance (e.g. an aging roof or, by extension, a settling foundation) is not covered. A State Farm representative on a forum might bluntly say foundation repairs from settling won’t be covered unless a covered peril caused it. State Farm does offer optional endorsements (depending on state) for things like sewer backup, but not typically a specific foundation rider in most states.
Farmers
Farmers Insurance agents stress the cause: “Your home insurance can cover damage caused by sudden, accidental events…not wear and tear”. In a Q&A, a Farmers agent explained that if a foundation crack is from something like a massive tree falling or a truck crashing into the house, it should be covered. But if it’s from settling or poor soil, it’s not. Farmers in Texas often automatically include or offer the foundation water damage endorsement on their policies, due to the prevalence of slab leaks – so Farmers customers in TX should check if they have that coverage for plumbing-related foundation damage.
Progressive
Progressive’s website plainly states that foundation cracks or settling aren’t covered by homeowners insurance as they are maintenance issues. They outline that the foundation is protected by dwelling coverage for certain perils, listing examples like tornadoes, fires, burst pipes, etc. Progressive advises taking preventive measures (like keeping moisture levels stable around the foundation) because insurance won’t pay for damage due to neglect (they even suggest steps like watering soil during droughts to prevent foundation issues).
Nationwide
Nationwide’s educational article echoes that it depends on the cause. They explicitly say the short answer to foundation coverage is “it depends,” and detail that accidents (sudden events) are usually covered, whereas flood and earthquake are not without additional policies. They also mention that foundation problems from faulty construction won’t be covered. Nationwide encourages homeowners to spot signs of damage early and maintain their property, hinting that ignoring issues could jeopardize coverage.
USAA
USAA, serving many military families (often in various states), follows the standard approach: if a covered peril like a burst pipe or house fire damages the foundation, it’s covered; if it’s due to settling or poor maintenance, it’s not. USAA’s advice articles note that “only water damage that’s sudden and accidental will be covered”, reinforcing that a slow leak causing foundation issues would be excluded. They also remind policyholders that floods and earthquakes aren’t covered by standard insurance and require separate coverage.
Texas-Specific Insurers
Texas Farm Bureau Insurance and other regional carriers often automatically include a limited foundation coverage endorsement in their homeowner policies (because of how common slab leaks are in Texas). These cover things like accessing plumbing in the foundation and limited foundation repair due to that water damage (often up to $25k). They all, however, exclude pure settling or drought-related cracking. The Insurance Council of Texas notes that dwelling coverage will cover foundation repair only if caused by a covered peril like fire, explosion, or sudden discharge of water – matching what the big national insurers say.
Research Takeaways
Across the board, major insurance companies have a consistent message: coverage for foundation repairs hinges entirely on the cause of damage. Allstate, State Farm, Farmers, Progressive, Nationwide, USAA – despite some differences in products and endorsements offered – all clarify in their documentation that standard homeowners insurance does not cover a foundation just cracking or settling from natural forces. They often use similar wording, noting those issues fall under maintenance or are explicitly listed as exclusions.
On the flip side, these insurers also reassure policyholders that if a foundation is damaged due to a covered peril, the policy’s dwelling coverage should help pay for repairs. For instance, Progressive details the list of covered scenarios (fire, wind, lightning, burst pipes, etc.), and Farmers gives real-world examples (falling objects, vehicle impact) – all aligning with each other’s criteria.
Endorsements and add-ons are another theme. In Texas, companies like Farmers, Allstate, and State Farm often offer the TX foundation coverage endorsement (sometimes automatically included) that we discussed earlier, covering slab leak related damage. Insurers in other states may not even have that endorsement because the need isn’t as high. Allstate, for example, might include it as part of their Water Damage package in Texas. USAA might provide guidance to its members in Texas about adding foundation coverage for a small extra premium.
When it comes to flood or earthquake, all insurers point out the need for separate policies. It’s a uniform stance: no standard policy covers those, regardless of the company. Top insurers often help facilitate getting those policies (e.g., State Farm agents can write NFIP flood policies, Allstate might offer a private flood policy, etc., and many partner with earthquake insurance providers).
One interesting insight: insurer claim philosophies. Some anecdotal evidence (and the tone of some insurer materials) suggests insurers scrutinize foundation claims closely. Because foundation problems are frequently caused by excluded factors, insurers will thoroughly investigate the cause. It’s not uncommon to hear of initial claim denials if the cause is unclear. For example, a homeowner might claim a recent minor earthquake cracked their slab; the insurer might send an engineer who concludes it was long-term settling instead – claim denied. Top insurers like State Farm and Allstate will rely on professional assessments in such cases. Therefore, these companies advise homeowners to take care of their foundations proactively. Allstate even suggests things like maintaining consistent moisture around the foundation and monitoring for cracks, since preventive care can avoid disputes about whether damage is long-term or sudden.
In summary, all major insurers agree: Covered peril = yes, coverage; Maintenance/earth movement = no coverage. The nuances come in with available add-ons (like the Texas-specific coverages) and how each company handles claims. But a policyholder armed with this knowledge will approach their insurer with the right expectations. If you have a foundation issue in Houston, for example, a Farmers or Allstate agent will likely first ask: “What do you think caused it?” because they know that’s the determining factor. And if it was a covered cause, they’ll help file a claim; if not, they might preemptively explain why it wouldn’t be covered, potentially saving you a claim on your record.
Insurer Positions on Foundation Repair Coverage
| Insurance Company | Stance on Foundation Repair Coverage | Notable Details / Options |
|---|---|---|
| Allstate | Covers foundation damage if caused by covered peril (fire, burst pipe, etc.). Does not cover cracking from wear/tear or soil movement. (via Bankrate summary) | Emphasizes maintenance – expects homeowners to manage soil moisture. In TX, offers foundation water damage endorsement for slab leaks. |
| State Farm | Foundation issues covered only for sudden accidents; no coverage for settling or aging. | Focus on “unforeseen” damage. Typically includes slab leak coverage in TX policies (often 15% of Coverage A). No standard earthquake/flood coverage – separate needed. |
| Farmers | Cause-dependent: sudden events (tree fall, vehicle impact, etc.) = covered; gradual settling = not covered. | Farmers Texas policies often include an endorsement for foundation water damage. Their agents often educate customers on foundation maintenance given climate. |
| Progressive | Covered perils only. Explicit that normal foundation settling/cracking is not insured. Will cover if, say, a windstorm or plumbing burst damages foundation. | Online resources encourage prevention (keep ground moisture consistent). Suggest adding flood insurance for flood-prone areas (as they don’t cover flood in HO). |
| Nationwide | “It depends on cause.” Covers accidents (storms, fire, explosions). No coverage for flood/quake without extra policy. No coverage for construction defects. | Offers an optional Water backup endorsement that can indirectly help if water under foundation from backup. Nationwide’s website has detailed education on what’s in vs out for foundations. |
| USAA | Follows standard industry exclusions. Covers foundation repair if due to a covered incident (burst pipe, fire, etc.), not if due to lack of maintenance or earth movement. | Often advises members to get flood insurance especially if stationed in flood-prone areas (many military in Gulf coast). USAA policies in Texas may offer foundation coverage add-on similar to others. Very service-oriented in guiding through claims. |
| Texas Farm Bureau (regional) | Similar to big insurers: covers foundation for covered perils (fire, etc.), excludes soil settling or shrinking. | Many policies automatically include limited foundation coverage (around $25k) for plumbing leaks as an extra perk. Agents stress the importance of this in Texas. |
| Chubb / High-value Insurers | (For high-value homes) Typically all-risk coverage but still exclude inherent vice or wear/tear. They might cover more by default (like some will include backup coverage). | High-value policies might be more flexible with covering ambiguous causes, but generally they also exclude normal settling. They do often include risk management services – e.g., inspections that could catch foundation issues early. |
This article is for informational purposes only and does not constitute legal, financial, or insurance advice. Coverage specifics may vary based on your individual policy, location, insurer, and endorsements. Always consult your homeowners insurance provider or a licensed insurance agent to understand the terms and exclusions of your policy. The information provided reflects research and policy guidance as of April 29, 2025, and may be subject to change.
Sources
Farmers | Does Home Insurance Cover My Foundation?
Goosehead Insurance | Water Coverages Explained
FEMA | National Flood Insurance Program Summary of Coverage
The Balance | Does Homeowners Insurance Cover Foundation Repair?
Progressive | Does homeowners insurance cover foundation repairs?
Nationwide | Does homeowners insurance cover foundation issues and repair?
NerdWallet | Does Homeowners Insurance Cover Foundation Issues?
Bankrate | Does homeowners insurance cover foundation repair?
Allstate | Does homeowners insurance cover foundation issues?
Insurance For Texans Blog | Is Your Foundation Covered by Your Texas Homeowners Insurance Policy?
Allied Foundation Repair | Homeowners Insurance and Foundation Repair
AAA Foundation Service | Is Foundation Repair Covered by Insurance?
Dawson Foundation Repair | Does Homeowners Insurance cover your Foundation Repair?
