Home Foundation Problems
In a typical year in the United States, expansive soils cause damage to more homes than earthquakes, floods, hurricanes and tornadoes combined. Yet unlike in these disaster scenarios, most homeowner’s insurance does not cover damage from expansive soils. Are you at risk? And what can you do to protect yourself?
Most homeowner’s insurance policies specifically exclude coverage for foundation repair. Why? This is for several reasons. First, insurance companies are aware that, in older homes, foundations tend to fail because of poor design and engineering. They were not built to withstand the changes in soil movement. This is a flaw in construction, not the result of a disaster. Therefore, in these situations home foundation damage is not and should not be covered by homeowners insurance.
Next, regular home maintenance and repair are not covered by homeowner’s insurance. Sometimes, foundations fail because of improper maintenance over time, which puts them squarely into this category of repair. Also, insurance does not cover typical wear and tear on the insured item. For example, car insurance covers a collision, but it won’t replace worn tires or belts.
There are a few instances where homeowners insurance might cover foundation repair. These are few and far between, but worth exploring to see if it is possible to obtain coverage for an expensive foundation repair bill. In each case, check with your insurance agent to see if coverage is a possibility:
-Earthquake. If the damage to the foundation was sudden and unexpected, due to earthquake, it may be covered. This typically applies, however, only if you have purchased an earthquake rider for your homeowner’s insurance policy. This circumstance is almost unheard of in the North Texas region.
-Flooding. A flood can wash away the soil around the foundation, causing the concrete to crack and break down. Again, coverage typically only applies if you have purchased a flood rider to your homeowner’s policy, or a separate flood insurance policy.
-Water damage from plumbing problems. Over the last several years, some North Texas homeowner’s policies have been adjusted to eliminate coverage for water damage. But a few policies still provide coverage if damage is caused to the home by a plumbing leak. Read your policy and talk to your insurance agent to determine if your policy covers plumbing water damage.
If you purchased a new home, it typically comes with a foundation warranty of anywhere from one to 10 years. This coverage can then be extended when the original period is about to expire. That way, if an expensive foundation repair issue arises, you will have a quick and easy way to pay for it.
Finally, the best way to head off these issues is to properly maintain your foundation over time. For a primer on foundation maintenance, check out our past blog on the subject.