Does Insurance Cover My Foundation?

Is My Foundation Covered under my Homeowners Insurance?

Wow, we’ve had a very hot and dry summer! A lot of people are asking, “Is my foundation covered under my homeowner’s insurance?” Shrinking and expanding of soil is not covered under your homeowner’s policy. There isn’t a homeowner’s policy out there, to my knowledge, that covers damages from drought-like conditions.

An Optional Endorsement

However, there is an endorsement you can purchase for your foundation. The endorsement is called- Coverage for Damage to the Foundation Caused by Water. This endorsement covers a leak in your slab that then causes damage to your foundation. A lot of plumbing pipes tend to run through the foundation. If they end up with a pinhole leak, you won’t know it’s leaking. But you may see that your foundation starts to shift and crack. Now you have damage to the foundation caused by a leak. The endorsement for coverage for damage to your foundation caused by water costs approximately $100-$150 per year, and it typically covers 15% of your home’s value. This does vary by carrier. Some will only pay $5,000, while others will allow you to purchase in increments of $5,000. Some carriers do the 15%, which I find is the most common.

Summary

That is the only coverage available for your foundation is the endorsement “Coverage for Damage to the Foundation Caused by Water.” It does not cover damage from drought-like conditions, but it can be helpful during times of water damage to your foundation.