Does Homeowners Insurance Cover Foundation Repair?

Short answerHomeowners insurance usually doesn't pay for foundation repair when the cause is settling, cracking, shifting soil or other earth movement, which are standard exclusions. Exceptions can depend on the cause, such as a fire, and on any added coverage. Read your policy and ask your state insurance department if you're unsure.

What this costs

Our national estimates, not quotes.
Option	Job	Low	High
Repair	Foundation Repair	$1,050	$8,100

Common exclusions

California's insurance department lists these as standard exclusions, and the sample HO-3 form (ISO's October 2000 edition, published by the Insurance Information Institute) has similar language:

Settling, cracking, shrinking or expansion of foundations
Earthquake, landslide, mudflow and other earth movement
Subsidence or sinkholes
Water below the ground that seeps or pushes through a foundation

Where an exception can come in

California's department says most policies will cover a fire or explosion that results from earth movement. The sample HO-3 form says some exclusions don't apply to loss from a covered accidental water discharge, and it includes tearing out and replacing part of a building when needed to repair a covered system. Whether that reaches a foundation depends on your facts and form, so ask your insurer.

Separate coverage

Earthquake coverage is sold separately or by endorsement. California insurers must offer it. Ask your agent what is available for sinkholes where you live.

Check your policy

Read your own policy, including any endorsements, and ask your agent or insurer how it applies to your situation. Your state insurance department can answer questions about coverage and take complaints. This page describes general patterns, not what your policy will pay.

Common questions

Does insurance cover a cracked foundation?

Generally not if it's from settling or shrinking. The sample HO-3 form excludes settling and resulting cracking of foundations. If a covered event caused it, ask your insurer to look at the claim.

Does insurance cover foundation damage from a plumbing leak?

It may depend on the policy and on whether the leak was sudden. Ask your insurer in writing. Don't assume either way until you've read the water and earth-movement sections.