Homeowners Insurance for Foundation Repair

The most common question we receive is, “Does Homeowners Insurance Cover Foundation Repair?” The answer is “…absolutely YES if…”

If you have a special policy endorsement  for accidental discharge and foundation repair, you are covered. In Texas and other states, most policy holders have never purchased this endorsement from their insurance provider. As a result, you are most likely NOT covered, at least not automatically.

homeowner insurance does not cover most foundation repair

Generally speaking, all insurance policies require that the loss or damage be caused by a “covered peril.” Furthermore, this loss must be “sudden and accidental.” In other words, the foundation damage must not be the result of a gradual deterioration over time.

Translated, this means that if your property suddenly develops a plumbing leak (water or sewer line), fixing that leak will most likely be covered by insurance, minus any deductible. Likewise, any associated foundation damage MAY be covered if it can be established that the sudden incident caused the damage. In most cases, that is a big hurdle to jump over!

Let’s assume that one day out of the blue, you discover water bubbling up or a wall or carpet area is suddenly wet…or maybe you hear a hissing sound you’ve never heard before. Obviously, this is probably a water line leak that needs immediate attention.

Step 1 is to always call your insurance agency before you do anything else. Describe the situation and get authorization to call in a plumber to locate and fix the leak. The agency will likely send out an adjuster to photograph the damaged area.

In connection with this incident, you believe that foundation damaged has also occurred, the insurance company will suggest bringing in an independent engineer to investigate the structural damage. The fee for this evaluation will be covered by the insurance company in most cases. The results will determine if any foundation damage has resulted from the plumbing leak. If so, you’re covered. If not, you’re out of luck. But at least the cost of the plumbing repair will be covered in this hypothetical situation.

Foundation Repair Houston, TXOur best advice is to always read your insurance policy and if it’s not an emergency, go ahead a hire a structural engineer to investigate your foundation issues. The results will help guide you in foundation repair alternatives and may even support an insurance claim.

When you’re ready, give us a call. We have years of experience working with the engineering community and in helping you with the question of: “Does Homeowners Insurance Cover Foundation Repair?