Home Foundation Repair and Your Insurance

Written by  //  October 7, 2013  //  Home Structure  //  Comments Off on Home Foundation Repair and Your Insurance

A crack in your home’s foundation is usually not a concern, but if the foundation is damaged, then repairs need to be made. Many homeowners assume that their insurance policy covers such damage, but on closer scrutiny they may learn that it does not. Worse, foundation repair is one of the costliest repairs that must be made on a home, an expense that insurance will cover provided that you take certain steps before a damage claim is filed.

Your Policy and its Exclusions

Take out your homeowner’s insurance policy and review it closely to find out what is covered and what is excluded. Homeowners insurance is typically sold in three levels: HO-1, HO-2 and HO-3. 

HO-1 covers a few perils, while HO-2 covers as many as 16 including explosion, smoke, falling objects, pipe freezing, wind damage and damage caused by an aircraft or a vehicle. An HO-3 policy is known as a "special form" policy because it lists what is not covered including damage caused by war, power failure, earth movement, nuclear hazard, and governmental action, to name a few. 

Home Foundation Repair Coverage

Whether your home’s foundation is covered or not is something that your policy should reveal. If the foundation is damaged by water, such as by a flood, it may not be covered. Your home’s foundation is considered a financial risk for insurers and is typically not included.

You can, however, opt for a dwelling foundation rider on your insurance policy and pay the extra fee for that service. Foundation damage from water seepage or a burst pipe will typically be covered. But, it won’t extend to actual flood damage or earthquake damage, perils that are insured separately.

The Endorsement Way

Another way that homeowners can protect themselves is to purchase optional coverages or what are known as endorsements. Homeowners typically buy such endorsements to support special coverage for their contents; for certain items of high value including art work, coin collections, and furs; and for identify fraud.

You can also purchase a water backup endorsement, coverage that protects you in the event of a backed up sewer or drain. If that damage extends to the foundation, then those repairs will be covered under that endorsement as well.

Seeking State Assistance

Your insurance company is regulated by your state and that is where you can turn if you have a dispute with your insurer. Consumers may find that their legitimate claim has been dismissed by the insurer and denied even on appeal. 

In addition, your state’s department of insurance handles the financial oversight of insurers, the licensing of companies and agents, claims handling and enforcement, rate review, and policy review and approval. Direct your complaint to your state’s insurance department for redress.

Working With a Contractor

Only hire a contractor experienced in making repairs to home foundations to handle your foundation repair. Moreover, your city may have much to say about the work being done including dispensing building permits and getting the work done within set hours only.

Your city may require that your contractor submit two sets of plans sealed by a professional engineer permitted to work in the state. Those plans will then go before the planning board for review and approval. If the damage includes the plumbing, then additional trade permits may be required. Also, trade and final inspections will have to be carried out before approval is given.

Author Information
Although Briana Cameron could spend hours browsing kitchen cabinets canada, her first love is blogging and assisting others in their online marketing adventures. Lately she has been trying to incorporate both by blogging about kitchen renovations. 

About the Author

View all posts by

Comments are closed.