Like every homeowner who values their home, you may have signed up for home insurance coverage thinking it’s going to protect your home from all kinds of hazards, including foundation damage. A sudden and major event occurs and then you realize your home isn’t 100% covered. So you retrieve your policy and start reading the fine details hoping that your insurer will compensate you.
Whether an earthquake strikes the foundation or floods inundate your home, it’s good to know that your home is protected. Plus, depending on the extent of damage, foundation repairs aren’t always fast or cheap. That’s when you turn to the insurer.
So will your insurance cover the repairs? Well, the best answer is it depends. Your best bet is to get a policy that’s going to take the burden of repairs off your shoulder so you can restore your home.
What Does Home Insurance Cover?
Insurers cover certain risks, which are generally regarded as hard to avoid like the following:
- Fire and explosion: Home insurance coverage offers protection from fire damage or unplanned explosions. But before they pay out for repairs, expect them to carry out tests to ascertain the cause of fire or explosion.
- Wind damage: It’s another unforeseen event that falls within the purview of home insurance coverage.
- Vandalism: In the event that burglars break into your home and damage your possessions, your home insurance company won’t hesitate to cover the repairs.
- Natural flooding: Insurers will shoulder the burden that’s caused by flooding due to heavy rains.
- Plumbing issues: Generally, insurers cover foundation damage attributed to risks such as burst pipes.
- Volcanic eruptions: Some insurance covers these phenomena as they’re not planned.
What Risks Are Not Covered?
Just because you have home insurance coverage doesn’t mean your insurer will compensate you for foundation damage. Sometimes, the nature or cause of damage is too great a risk for insurers to bear. So they avoid covering such kinds of risks. All these are commonly excluded from coverage:
- Water leakage/floods: Most policies exclude damage from water leakage and flooding because overflowing rivers, creeks, and ponds in their coverage. The same goes for floods occasioned by sewer backups or water main breaks.
- Earthquake movements: Earthquakes, sinkholes, mudslides, and various types of earth movements can degrade the foundation and compromise the structural integrity of your home. Sadly, many insurers tend to exclude them from coverage. So if an earthquake strikes, you may not be able to make a claim.
- Faulty construction: Insurers don’t cover any damage that results from negligence on the part of the homeowner. And this includes pressure from tree roots, moisture changes around the home, or faulty construction. All these are risks the homeowner can prevent. Better be safe than sorry by taking responsibility for whatever happens within or around your home.
Get Extra Homeowners Insurance Coverage
Buying a home is likely to be the biggest investment you’ll ever make in life. Whether it’s a condo or a family home, you’ll want to make sure it stays safe by signing up for a homeowner’s insurance policy. That’s a step in the right direction, but it’s not enough to guarantee you protection. Review your coverage and add a rider that takes care of specific risks that can trigger soil movement or settlement. In the event of damage, you will get compensation.
What Options Do You Have For Foundation Crack Repairs?
As soon as foundation cracks pop up, like after a sudden event, contact a foundation repair contractor to assess your home to determine the cause of damage. The cause is more important than the damage. Once you know the cause, you can determine whether a claim is possible or not.
All hope isn’t lost. You can get cash-out refinance, buy another property, and then use the proceeds from leasing it to finance the necessary repairs. If a claims compensation and cash-out refinance are out of the question, your other option is to pay for foundation crack repairs out of pocket. It may seem costly at first, but it’s the only thing you can do to save your home. Try to get multiple quotes from different contractors. Be sure to ask the contractors about any payment plans or financing you might be able to take advantage of. Not sure whether your home insurance coverage will adequately cover your home for foundation repairs? Call one of our foundation experts to discuss your options and schedule a free foundation inspection.