Although foundation damage is not an uncommon occurrence, you could be looking to pay some eye-watering sums for the repairs when it happens. Fortunately, your home insurance can cover these costs, but this isn’t always the case.
When does your home insurance cover foundation repair costs?
Every home insurance policy is unique. And you can only claim for foundation repairs for what’s listed in your policy. If the cause of your foundation crack isn’t in the policy, you will likely have to pay for all repair costs yourself. So before signing up for a plan, take the time to read the fine print. It would help if you had an understanding of the exclusions and your responsibilities of a homeowner. That said, your home insurance should cover sudden or unforeseen issues that cause damage to your home. These include;
- Fire explosions
- Water damage caused by burst or leaking pipes
- Flooding due to burst pipes or broken washing machine hoses
What’s excluded from a home insurance policy?
Each home insurance company has its own set of exclusions and reasons why it will not pay out. Here are some of the events not covered by home insurance and why the insurer may refuse to help repair the foundation cracks in Indianapolis, IN.
1) Normal wear and tear: Home insurance does not cover wear and tear. It is your responsibility as a homeowner to perform the necessary maintenance to keep your property in good condition.
2) Natural shifting and earth movement: Home insurance doesn’t cover the earth under your home. So you may not receive a dime for damages associated with earth movements like landslides, sinkholes, mudslides, and earthquakes. Most insurance companies consider them too risky and will not cover them.
3) Foundation settling: Generally, home insurance doesn’t cover foundation cracks caused by soil expansion or contraction. Most insurance companies consider this cause as preventable through regular home maintenance.
4) Faulty construction: If your foundation is subpar, the chances are high that your policy will not cover any damages. The standard policy does not cover poor workmanship. Your only recourse is to seek reimbursement from the warranty, as long as it is still valid.
5) Vermin and termite damage: Insects, rodents, and other vermin infestations don’t make it onto the list as well. Insurers consider pest control as part of the regular home maintenance process.
6) Floods: Floods caused by rising water outside your home like torrential rain or overflowing rivers are not covered.
Usually, insurers will not pay out for these reasons because they deem them preventable risks. While this may seem utterly unfair, it’s your responsibility to do due diligence before buying a property and to keep it in good condition once you move in.
What can you do if your foundation crack is not covered?
If your home insurance policy does not cover your foundation cracks, you have limited options going forward. You can either pay for the repairs out of your pocket or prove that the cracks were caused by events covered by your home insurance. Your best bet, in this case, is to approach a foundation contractor. Let them determine the cause of the cracks so you can know whether your claim will be accepted. If your insurance policy does not cover foundation cracks, you can have the contractor repair it at a cost. Also be sure to talk with these local contractors about payment and financing plans you can take advantage of.
In a nutshell, anything that falls under the umbrella of regular maintenance or seen as preventable won’t make the cut into most home insurance policies. Your home insurance should cover you from unexpected damage, especially after significant events like burst pipes, storms, or fires. Even if your home insurance policy does not include foundation cracks, don’t let it deteriorate. Remember that the foundation supports one of your key investments: your home.
Have foundation cracks but not sure how to proceed with them? Get in touch with the foundation repair experts in Indianapolis, IN. Schedule a free foundation cracks inspection and find out what options you have to finance your repairs.